Many of the major technology companies have come under criticism for the way they conduct their tax affair in Europe and now it looks like Facebook will change the way they pay their taxes in the UK.
Facebook, Google, Apple and more companies run their European operations from Ireland, this means that they pay very little tax in the UK.
Now it looks like Facebook will change its tax affair and will pay considerably more tax in the UK, as it will no longer route the majority of its revenue through Ireland, the news comes in a report from the BBC.
After heavy criticism that it was avoiding tax, the BBC can reveal that profits from the majority of Facebook’s advertising revenue initiated in Britain will now be taxed in the UK.
It will no longer route sales through Ireland for its largest advertisers.
That includes major businesses such as Tesco, Sainsbury’s, consumer goods firm Unilever and advertising giant WPP.
Smaller business sales where advertising is booked online – with little or no Facebook staff intervention – will still be routed through Ireland, which will remain the company’s international headquarters.
It will be interesting to see if any other companies do something similar as many of them are being looked at by EU regulators.
Source BBCFiled Under: Technology News, Top News