Online auction giant eBay avoids paying £50 million in UK taxes

Shopping giant and online auction service eBay is reported to have avoided paying nearly £50 million in corporation tax.

The firm paid just over £1 million in corporation tax - using legal accounting schemes - despite making almost £800m in British sales, according to a Sunday Times investigation.

It is thought eBay used legal tax-avoidance schemes to channel payments through Luxembourg and Switzerland.

An eBay spokesman said the firm "works with tax authorities and complies fully with all applicable tax laws and regimes".