Facebook set to pay more British tax

Facebook says it will no longer route its British sales through Ireland, which kept its taxes very low, and will pay its fair share.

Facebook.

Facebook says it will stop routing its British sales through Ireland, which kept its tax very low. (AAP)

Social media giant Facebook, which has been under fire in Britain for its tax arrangements, says it will stop routing its British sales through Ireland - a practice that had kept its UK tax bill extremely low.

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

Facebook said in a statement on Friday that from April, "UK sales made directly by our UK team will be booked in the UK, not Ireland. Facebook UK will then record the revenue from these sales."

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

Facebook paid just STG4327 ($A8342) in corporation tax in 2014 in Britain, one of its biggest markets outside the United States.


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Published 4 March 2016 9:21pm
Updated 4 March 2016 10:40pm
Source: AAP


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