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

  • JPMorgan settles mortgage discrimination lawsuit

    Economic CTV News
    NEW YORK -- JPMorgan Chase will pay $55 million to settle federal charges that independent brokers working for the bank discriminated against minorities seeking home mortgages during the housing crisis. While the settlement is not a big financial dent to the giant bank, the cases illustrate the depth of the mortgage quagmire that has trailed the financial sector for a decade. Source
  • Netflix's shrinking DVD service faces uncertain future

    Economic CTV News
    SAN FRANCISCO -- Originally cast in a starring role, Netflix's original DVD-by-mail service has been reduced to a bit player -- one that may eventually get killed off as the company focuses on its booming video streaming service. Source
  • Vegemite being sold by Oreo-maker Mondelez

    Economic CTV News
    NEW YORK -- Vegemite, the salty spread beloved in Australia, is being sold by the maker of Oreo cookies to an Australian dairy company. The spread and other grocery products are being sold by Mondelez to Bega Cheese in a deal worth about $345.3 million (460 Australian dollars). Source
  • Expect Fed to gradually hike rates over next 3 years: Yellen

    Economic CTV News
    WASHINGTON -- Federal Reserve Chair Janet Yellen says she expects the Fed to raise its benchmark interest rate several times a year through 2019, as it moves closer toward to its economic goals of maximum employment and stable inflation. Source
  • U.S. Labor Department sues JPMorgan over sexual discrimination

    Economic CTV News
    NEW YORK -- The U.S. Department of Labor is suing JPMorgan Chase & Co. for discriminating against female workers. The federal agency said Wednesday that its review found that at least 93 female workers in an investment-bank division earned less than comparable men in the same jobs since at least May 2012. Source
  • Air Transat to test taxiing system that could cut emissions

    Economic CBC News
    Air Transat is planning to test and deploy a new system next year that would allow an aircraft to taxi from the runway to the gate without having to use a plane's engine, thereby cutting operating costs and greenhouse gas emissions. Source
  • Loonie down more than a cent after Poloz leaves door open to rate cut

    Economic CBC News
    The Canadian dollar was dragged down more than a full U.S. cent on Wednesday, following comments from the Bank of Canada that an interest rate cut "remains on the table" if conditions warrant. The loonie lost 1.16 U.S. Source
  • Bell Canada raising prices on home internet, TV in February

    Economic CBC News
    Bell Canada is increasing monthly prices for a number of its residential communications services, including home TV and internet packages, beginning in February. The increases will primarily affect customers in Ontario and Quebec. According to the Bell Canada website, the price increases are as follows: Source
  • Canadian Pacific Railway says Hunter Harrison stepping down immediately

    Economic CTV News
    CALGARY -- Canadian Pacific Railway Ltd. (TSX:CP) says that Hunter Harrison will step down as CEO immediately instead of leaving in July as announced last summer. The company said after markets closed that current president and chief operating officer Keith Creel will become CEO effective Jan. Source
  • U.S. sues Oracle, says it pays white men more than others

    Economic CTV News
    NEW YORK -- The Labor Department is suing Oracle, claiming that the technology giant pays white male workers more than their non-white and female counterparts with the same job titles. The lawsuit also says that the company has a systemic practice of favouring Asian workers in its recruiting and hiring practices for product development and other technical roles, which results in hiring discrimination against non-Asian applicants. Source