Palantir, the US spy-tech giant complicit in Israel's genocide in Gaza, has paid remarkably little UK tax despite receiving at least £670 million in taxpayer-funded government contracts, according to an openDemocracy investigation.
The company, whose lucrative public sector deals include a £330 million NHS data contract, reported £25.3 million in UK pre-tax profits in 2024 but paid an effective tax rate of just 8%—well below the standard 25% corporation tax rate. Its effective tax rates were even lower in 2023 (4.7%) and 2022 (4.2%).
The investigation found Palantir has accumulated hundreds of millions of pounds in tax relief through a combination of profit-shifting and generous tax breaks linked to employee share schemes. By 2022 alone, the company had built up around £230 million in tax deductions, allowing it to sharply reduce its UK tax bill.
TaxWatch director Mike Lewis questioned why a company whose revenues largely come from British taxpayers contributes so little in return. Effectively, Palantir is profiting twice, first from public contracts and then from a tax system that allows it to minimise its contribution to the public purse.
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