Facebook set to pay more British tax after criticism

LONDON -- Social media giant Facebook, which has been under fire in Britain for its tax arrangements, said Friday it will stop routing its British sales through Ireland -- a practice that had kept its U.K.

See Full Article

tax bill extremely low.

Facebook, Amazon and other multinationals have been criticized for using complex tax arrangements in Europe to drastically reduce their bills.

Facebook said in a statement 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." It said the change would "provide transparency to Facebook's operations in the U.K."

Facebook paid just 4,327 pounds (US$6,116) in corporation tax in 2014 in Britain, where it recorded 105 million pounds in revenue. The U.K. is one of its biggest markets outside the United States.

The company did not say how much more tax it would pay under the new arrangements in Britain, where the corporation tax rate is 20 per cent of taxable income.

Facebook's announcement follows Britain's introduction of a "diverted profits tax" of 25 per cent to deter companies from using complex international arrangements to cut their tax bills.



Advertisements

Latest Economic News

  • A Canada Day miracle: Gas prices at 7-year low for July long weekend

    Economic CBC News
    In what might be described as a Canada Day miracle, the price of gasoline across the country is expected to be the lowest it's been in seven years for a July long weekend. According to research done by GasBuddy.com, gasoline prices in Canada are averaging $1.04 per litre, 14 cents per litre lower than the 10-year average. Source
  • Tim Hortons offering poutine doughnut on Canada Day — but only in the U.S.

    Economic CBC News
    To celebrate Canada's 150th birthday, Tim Hortons is serving up patriotic food. On the menu: a doughnut smothered in poutine and an Iced Capp coffee drink topped with whipped cream, maple flakes and bacon bits. Source
  • Online thrift store ThredUp expanding to Canada

    Economic CTV News
    TORONTO - After operating in the U.S. for nearly a decade, online thrift store ThredUp is expanding into Canada and setting its sights on shoppers who want to stay stylish but save their dimes. Some retail experts caution the company may find it difficult amid the growing popularity and proliferation of charity-based organizations and fast-fashion retailers who already appeal to the budget-conscious. Source
  • Global shares mixed as Asia rally sputters in Europe

    Economic CTV News
    HONG KONG -- Global shares are mixed after a rally in Asia sputtered out in early European trading. KEEPING SCORE: European shares fell back after opening mostly higher. Britain's FTSE 100 gained 0.3 per cent to 7,407.33 and Germany's DAX ticked down a fraction of a per cent to 12,645.28. Source
  • Asian stocks rally after Wall Street rebounds

    Economic CTV News
    HONG KONG -- Asian shares rallied Thursday following Wall Street's rebound as investors regained confidence in the global economic outlook. KEEPING SCORE: Japan's benchmark Nikkei 225 index rose 0.6 per cent to 20,242.63 and South Korea's Kospi advanced 0.7 per cent to 2,399.41. Source
  • Tip Top Tailors owner sells assets in deal that will see 140 stores remain open

    Economic CTV News
    TORONTO -- The assets of Grafton-Fraser Inc., owner of Tip Top Tailors and other menswear chains, have been bought by U.S.-based GSO Capital Partners in a move to stabilize the Canadian retail business. As part of the agreement, the new operators of the Toronto-based retailer is keeping 140 stores open across the country, while 12 underperforming locations have been closed, affecting 100 jobs. Source
  • Staples to be acquired by Sycamore in $6.9B US deal

    Economic CBC News
    Private equity firm Sycamore is buying office supplies chain Staples for $6.9 billion US. The companies said Wednesday that shareholders of Framingham, Mass.-based Staples will get $10.25 US per share. Staples stock had closed Wednesday up 77 cents, or 8.4 per cent, to $9.93 on a late-afternoon report of a deal. Source
  • Cyberattack spreads across the globe, but its origins and purpose remain murky

    Economic CBC News
    As a cyberattack continued to spread among nations and corporations on Wednesday, the identity and motives of the attackers remain a mystery. Ports, hospitals and banks around the globe have been hit by a version of ransomware being called ExPetr, similar to Petya but with a different functionality. Source
  • Head of NEB welcomes overhaul recommendations

    Economic CTV News
    CALGARY - The head of the National Energy Board says the proposed overhaul of the federal regulator will make it more suited to the challenges of the 21st century. Speaking at the sidelines of an industry safety workshop, NEB chairman Peter Watson says recommendations last month by a modernization panel could fix some of the limitations of the regulator and help it keep up with the times. Source
  • Boeing seeks delay in duty ruling on petition against Bombardier

    Economic CBC News
    Bombardier may have to wait an extra two months to find out if its CSeries commercial jets will be hit by punishing U.S. duties. Boeing has requested that the U.S. Commerce Department delay its preliminary determination on its petition until Sept. Source