A new report alleges that Palantir Technologies, the US data analytics and AI company with contracts in the military and intelligence sectors, has 'engineered its corporate structure' to pay no US federal corporate income tax. The study by the Centre for International Corporate Tax Accountability and Research (CICTAR) reveals that the company's global effective tax rate was just 1.4% in 2025, despite reporting soaring revenues.
The report identifies a pattern of profits from UK and European contracts being shifted to the US parent company, leaving little taxable profit in the countries where work is performed. In the UK, Palantir recorded a corporate tax charge of about £2 million in 2024, despite securing over £670 million in government contracts in recent years.
Palantir was founded in 2003 by a group including CEO Alex Karp and billionaire investor Peter Thiel. It initially received backing from In-Q-Tel, a CIA-funded venture capital fund. The company's market value stood at around $370 billion, making it one of the world's 50 largest listed companies.
The company has faced controversy over its work with Israeli military, with CICTAR reporting a surge in investment following the October 7 attacks and a strategic partnership with the Israeli Ministry of Defence in 2024. CEO Karp has defended the support, stating, 'I think Israel is on the side of good.'
Palantir has paid no US federal corporate income tax for three consecutive years. Its accumulated tax benefits could shelter up to $16.5 billion in future profits. In the UK, a £330 million contract with the NHS has drawn criticism from health workers and digital rights groups.
While the report does not allege illegality, it raises ethical questions about a company receiving billions in public contracts contributing so little in tax. Duncan McCann of the Good Law Project called the findings 'a slap in the face to ordinary taxpayers and local businesses who play by the rules.' Amnesty International has urged the UK government to reconsider Palantir's contracts.
Source: www.aljazeera.com