PARIS – Facebook’s French subsidiary has agreed to pay 106 million euros ($ 125 million) in back taxes and penalties following persistent government efforts to get web giants to pay more taxes there where they earn their money.
The deal came after French tax authorities conducted an in-depth audit of a decade of Facebook’s operations in the country, from 2009 to 2018, a company spokesperson said on Monday.
The spokesperson, who was not authorized to be publicly appointed under Facebook policy, said the company “takes its tax obligations seriously” wherever it operates.
The French tax service did not comment on the agreement, citing the right to tax secrecy.
Facebook’s French revenue skyrocketed last year after the company decided to include advertising revenue from French businesses in its local accounting returns, instead of reporting it in low-tax Ireland, where operations international Facebook are based.