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Facebook tax refund sparks outrage, but company did pay taxes

February 18, 2013|By Salvador Rodriguez
  • A report says Facebook will receive $429 million in tax refunds for 2012.
A report says Facebook will receive $429 million in tax refunds for 2012. (Karen Bleier / AFP/Getty…)

A recent report saying Facebook will receive $429 million in tax refunds has sparked outrage on the Web, given that the company made more than $1 billion in profits in 2012.

Facebook is getting the refund in large part because of a $1.03-billion tax break, according to the report released by Citizens for Tax Justice, a tax research and advocacy group.

That tax break was a result of stock Facebook awarded its employees in 2012, when the company went public.

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The Silicon Valley company paid some "income and other employment taxes," according to its 2012 annual earnings report. Facebook said it paid $2.86 billion to "the appropriate tax authorities.”

Facebook declined to comment on the advocacy group's report.

The perception that Facebook paid no taxes brought forth indignation on the Web. Here are a few Twitter users' reactions:

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