US data and AI company Palantir paid only £2.1m in UK corporation tax in 2024 — an effective rate of around 8%, well below the standard 25% — despite holding an estimated £670m in British government contracts, including a £240m Ministry of Defence deal awarded without competitive tender. A report by the Centre for International Corporate Tax Accountability and Research, commissioned by trade union Unison, found that Palantir's global effective tax rate was just 1.4%, partly because revenues from European clients are largely booked through its US parent company rather than local subsidiaries, a transfer-pricing arrangement that funnels profits back to the US where accumulated tax credits mean Palantir owes no federal income tax for nearly a decade. Palantir said it complies fully with tax rules in all jurisdictions and that both transfer pricing and share-option deductions are standard, lawful practices used by multinational companies worldwide.