Facebook Agrees to Pay $110 Million in Back Taxes in France
Aug. 25, 2020Facebookhas agreed to payover 100 million euros ($118 million) as back taxesto the French government. The amount includes a penalty and comes after French tax authorities conducted a ten-year audit of Facebook’s accounts.
As reported byReuters, theFrench government says big tech companies are paying too little tax despite having significant salesin certain countries. Right now, international tax rules permit tech giants to pay taxes for sales generated in local markets in Europe to their regional headquarters. In other words, brands can simply set up headquarters in countries with low tax rates to evade higher taxes.
“We take our tax obligations seriously, pay the taxes we owe in all markets where we operate and work closely with tax authorities around the world to make sure we abide by all applicable tax laws and resolve any litigation,”a Facebook spokesperson told Reuters.
Subin writes about consumer tech, software, and security. He secretly misses the headphone jack while pretending he’s better off with the wireless freedom.
