Tax watchdog group: Facebook won’t pay taxes, will receive refund
WASHINGTON, D.C. (WITI) — A tax watchdog group says Facebook will pay no state or federal taxes on its profits for 2012 — and will even get a half-billion-dollar refund.
Citizens for Tax Justice says it found in Facebook’s annual earnings report, the social network won’t owe any taxes on its $1.1 billion in pre-tax profits for last year.
That’s according to a story in Bloomberg Businessweek.
The tax research group says Facebook is using stock options and other forms of compensation to investors and employees for the write-off.
Analysts say the move is legal, and related to the company’s decision to go public last year.
A Facebook spokeswoman contacted by Bloomberg Businessweek declined to comment on the tax break, but pointed out tax benefits were discussed on a recent analyst conference call.