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Facebook To Pay More British Tax

Facebook To Pay More British Tax

Enterprise & IT Mar 4,2016 0

Facebook on Friday said it would stop booking routing its British sales through Ireland, a practice which reduced its taxes, following the British government's introduction of a new tax on profits shifted offshore. Facebook, Amazon, Google, Apple and other multinationals have been criticized for using complex tax arrangements to drastically reduce their bills.

Facebook said that from April, "U.K. sales made directly by our U.K. team will be booked in the U.K., not Ireland. Facebook U.K. will then record the revenue from these sales."

The company said the change would "provide transparency to Facebook's operations in the U.K."

Google says it complies with all tax rules. The company last month agreed to pay 130 million pounds ($184 million) in UK back taxes and interest and said it would also start to report more revenue in Britain.

The BBC reported that the change would mean the Facebook was set to pay millions of pounds more in tax.

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