(Reuters/Norbert von der Groeben)
A new report has claimed Facebook needs pay no tax for the 2012 financial year even though the social networking site made more than $1 billion in profits from its U.S. operations alone.
It has also been claimed that Facebook will not only pay no taxes, it is also due a $429 million tax refund, according to The Daily Mail.
The multi-million dollar tax refund reportedly comes from numerous tax deductions on stock options for the site, as well as stock and share awards
The claim has been based off of Facebook's annual report which was released in January.
According to Business Week, Mark Zuckerberg's company reported that it had a $559 million tax liability in 2012, however, the refunds owed to the company were just over $1 billion for the year, resulting in a $429 million tax refund.
Facebook is a social networking site launched in February 2004, owned and operated by Facebook Inc.
As of September 2012, Facebook had more than 1 billion active users, with more than half of those using Facebook on a mobile device.
Users must register before using the site, after which they may create a personal profile, add other users as "friends", and exchange messages, including automatic notifications when they update their profile.
Additionally, users may join common-interest user groups, organized by workplace, school or college, or other characteristics, and categorize their friends into lists such as "People From Work" or "Close Friends."
Facebook was founded by Mark Zuckerberg with his college roommates and fellow Harvard University students Eduardo Saverin, Andrew McCollum, Dustin Moskovitz and Chris Hughes.
Here is a video report on Facebook no paying any tax in 2012, and even receiving a $429 million tax refund: