US auction site eBay has paid only £1.2m in tax in the UK, according to an investigation by the Sunday Times.The newspaper said that its tax bill in 2010 comes despite eBay's UK subsidiaries generating sales of £800m.
The auction site - which also owns PayPal - responded that it "complies fully with all applicable tax laws".
The report comes after coffee giant Starbucks was also accused of paying just £8.6m in corporation tax in the UK over 14 years.
According to the Sunday Times, eBay had sales of £789m during 2010 in the UK at its four British subsidiaries. Using its worldwide profit margin of 23%, it would have made a profit in the UK of £181m, leading to corporation tax owed of £51m.
Instead, it paid £1.2m, the report said.
Accounts for one of its units, eBay (UK) Ltd, show that for 2010 - the last year available - it owed tax of £766,000 on profits of £4.4m.
The auction site told the BBC: "eBay in Europe works with tax authorities and complies fully with all applicable tax laws and regimes - including national, EU, and internationally recognised OECD rules."
I say, Change the law Mr Chancellor. Make this company pay the tax it should pay!