ONLINE auction and shopping giant eBay has reportedly avoided paying nearly STG50 million ($A78 million) in corporation tax in Britain through legal accounting schemes.
The group paid just over STG1 million in UK corporation tax despite making nearly STG800 million annual sales in Britain, according to a Sunday Times investigation.
It is thought eBay used legal tax-avoidance schemes, which saw it channel payments through Luxembourg and Switzerland.
The group is the latest firm to see its tax payments come under scrutiny after coffee chain Starbucks reportedly paid just STG8.6 million in corporation tax in 14 years of trading in Britain - and nothing in the past three years.
The American coffee firm - valued at STG25 billion - is understood to have generated more than STG3 billion of sales in the UK since 1998, but has paid less than one per cent in corporation tax.
Facebook and Google have also been criticised over poor contributions to HM Revenue & Customs (HMRC).
It was revealed earlier this month that Facebook paid only STG238,000 in tax in the UK despite pulling in STG175 million in revenues, while Google reportedly paid STG6 million in UK tax despite revenues of STG2.6 billion.
The Sunday Times reports that eBay - the world's biggest online marketplace - would have made UK profits of about STG181 million in 2010, the latest year for which accounts are available.
This would have produced a corporation tax bill of STG51 million.
But the group is believed to have paid STG1.2 million in tax that year.
It is thought HMRC head Lin Homer will be questioned in a hearing by MPs on the House of Commons public accounts committee on November 5 over tax avoidance strategies used by foreign firms.
An eBay spokesman said: "eBay Inc in Europe works with tax authorities and complies fully with all applicable tax laws and regimes - including national, EU, and internationally recognised OECD rules."
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