Facebook Is Expecting a $429 Million Tax Refund
As if Zuckerberg needs more money!
We don’t begrudge anyone making millions. But when you’re raking in profits and still get a tax refund like they did, it makes you say – hold on!
Facebook listed a federal tax liability of $559 million, after taking in over $1 billion in profits for the last tax year. However, because of federal tax laws, Facebook is going to be able to get as much as $429 million back in refunds because of the cost of executive stock options and share awards.
There’s nothing illegal about what Facebook is doing, however, the non-profit group Citizens for Tax Justice say companies like Facebook are allowed to treat non-cash compensation, such as stock options, the same as salaries. Hence, they can end up getting a tax refund.
Facebook has used stock options and non-cash compensation far more than companies such as General Motors, and the company ended the year with about $10 billion in cash, hedging it against any future financial troubles.
Facebook officials declined to comment on the tax report.