FACEBOOK DEFENDS ITS €3.4m TAX BILL AS IRISH REVENUES ROCKET - Facebook Ireland last year paid only €3.4m in corporate tax in spite of revenues rocketing by over €1.8 billion to €4.83 billion.
The Dublin-based firm, which serves as Facebook's international HQ, accounted for 47% of Facebook's global revenues of $12.46 billion as the Irish unit's revenues increased by 62.5% over the 12 months. However, in spite of the growing importance of Facebook Ireland to the social media giant's worldwide operations, its corporate tax bill rose by only €1.1m to €3.4m last year, writes the Irish Independent. The accounts just filed with the Companies Office show that the firm recorded pre-tax profits of €12.8m. The low profits - which represent a 76% jump on the 2013 pre-tax profits of €7.29m - are primarily due to the firm's large administrative expenses rising by 62.5%, from €2.9 billion to €4.73 billion. These administrative expenses are mainly made up of royalty payments and fees to other Facebook entities. The payments to the other Facebook firms are not disclosed in the 2014 accounts - however, in 2013, Facebook Ireland paid royalties of €1.53 billion to its immediate parent, Facebook Ireland Holdings, for licence expenses and €969m to Facebook Inc for data hosting services and management fees. On Facebook Ireland's corporate tax bill, a spokesman said yesterday: "We comply with all tax laws where we operate".
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SENIOR AIB EXECUTIVES QUIT TO JOIN PROPERTY FIRM BARTRA - Two senior executives from AIB’s property lending division have left to join Bartra Capital, a recently-established property group set up by former Treasury Holdings co-owner and barrister Richard Barrett.
David Renwick, head of property lending at AIB corporate and institutional banking, and Paul Dowling, head of development and specialist property at the bank’s property lending unit, left the State-controlled financial institution yesterday. AIB declined to comment on their departures. However, it is expected the pair will have to serve a period of “gardening leave” before taking up their roles with Bartra, says the Irish Times. It is understood they will advise property developers seeking non-bank debt financing, with a particular focus on international investment groups. Their recruitment will add considerable experience to Bartra’s fledgling business and would be regarded as a blow to AIB. The pair were involved in two major financing deals recently - Cairn Homes’ securing of a €150 million debt facility and the €400 million funding package put together by Michael O’Flynn to regain control of his business in Ireland.
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HAILOPAY OPENS IN IRELAND AND EXPANDS TO HACKNEYS - Taxi app Hailo has launched a new service that will allow passengers flagging taxis off the street pay via their mobile as part of its continued growth in Ireland.
The company is rolling out HailoPay to facilitate customers paying via their smartphone and eliminate the need to carry cash or divert to ATMs to pay for the journey. It will also reduce the need for drivers to install bulky or expensive card-reading machines, says the Irish Examiner. “HailoPay is the latest innovation we’ve introduced to the small public service vehicles [SPSV] industry to create a service that is quick, simple, and, most importantly, secure for both passenger and driver,” said Hailo Ireland general manager Tim Arnold. With HailoPay, customers can use their smartphone to pay for their journey with a credit or debit card by visiting a secure site by entering the license number of their driver and confirming the payment amount. The customer does not need to hand over either the phone or the debit card, meaning their details remain secure. Once payment has been made, the driver receives confirmation, while the passenger gets a receipt, which can be sent via email.
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FORMER UK PM GORDON BROWN TO JOIN PIMCO AS ADVISER - The former UK prime minister Gordon Brown has taken his first major role in the private sector since leaving Downing Street more than five years ago, becoming an adviser to Pimco, one of the world’s largest asset managers.
Mr Brown is joining a new Pimco board chaired by another public servant-turned-corporate adviser, the former Federal Reserve chairman Ben Bernanke, designed to provide its investment managers with international economic and policy insights. As such, Mr Brown will attend regular board meetings and make an annual speech to the company’s “secular forum”, which sets long-term investment strategies, says the Financial Times. He joins other heavyweight former public officials on the board, including the former president of the European Central Bank, Jean-Claude Trichet, and Ng Kok Song, who was chief investment officer of Singapore’s sovereign wealth fund until 2013. A spokesman for the former prime minister said: “Mr Brown is looking forward to discussing economic events and trends again with Ben Bernanke, Jean-Claude Trichet, Anne-Marie Slaughter [international lawyer and policy expert] and others.” The spokesman added: “Any money goes to the Office of Gordon and Sarah Brown to support their charitable and public service work. Mr Brown does not receive a penny.” Pimco did not disclose what it will pay for Mr Brown’s advisory role, but it is likely to be multiples of the fee he received for a one-off speech at Pimco’s headquarters in Newport Beach, California, in 2011: £36,174 plus £12,484 in flights and accommodation for the former prime minister and a member of staff.
