Facebook No Pay Taxes
Feb 23,2013 0 Comments
Would not it be nice if you did not have to pay tax, and the same year received a return of nearly $430 million tax on top of $1.1 billion in sales of Annual business? It would be nice, and the situation is now lucky Facebook.
This shocking revelation final question of “Who is responsible for monitoring?” Is this just another example of a mega-billion dollar corporation find loopholes to take advantage of the situation of the chance to work due the tax deductibility of executive stock options. According citizens group Tax Justice, last year a large number of Facebook employees cashed in their stock options. The money received by employees of the collection is considered the same salary as the U.S. government. Which in turn, gives Facebook some very generous tax deductions for each of the stock options that were cashed in.
Facebook is not the first company to use this important tax relief to his advantage and is just one of many large companies who are accused of not paying their share of tax. But Facebook and other companies can legitimately deduct stock options granted to their executives. Many companies whose employees receive stock options benefit deductions monstrous. There were 26 companies, including giants like General Electric, Verizon and Boeing, whose total combined profits of $ 205 billion, which paid zero federal income tax between 2008 and 2011. This vulnerability stock options will likely prevent Facebook to pay billions of dollars in taxes and even allow them to ride on for years without ever paying these deductions in.
Although Facebook is not really paying federal taxes in 2012, it is fair to pay the tax on behalf of the absence employees. This tax for the previous year due to the fact that the RSUs are a form of equity compensation. So in other words, instead of giving employees equity incentive, Facebook has made a contractual promise to give them shares later on, after the IPO set stock units holding limited the amount of tax due to a tax rate estimated mutual federal and 45 percent state.
Regardless of whether deductions are legitimate heavy Facebook, taxpayers may find it unfair means new. How do you feel about tax deductions for options execution?
[Image via bostonherald]