Facebook to pay more than $ 110 million in back taxes in France | News

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Par Mathieu Rosemain

PARIS (Reuters) – Facebook The French subsidiary has agreed to pay more than 100 million euros ($ 118 million) in back taxes, including a penalty, after a ten-year audit of its accounts by the French tax administration, the French tax authorities said on Monday. society.

France, which is doing everything possible to revise international tax rules on digital companies such as Facebook, Alphabet’s Google , Apple and Amazon , said large tech groups pay too little tax in the country where they make significant sales.

Current international tax rules legally allow companies to channel sales generated in local markets in Europe to their regional headquarters. Some of the tech companies, including Facebook, have European or international headquarters based in countries with relatively low corporate tax rates, such as Ireland.

A Facebook spokesperson said that French tax authorities carried out an audit on Facebook’s accounts over the period 2009-2018, which resulted in an agreement by the subsidiary to pay a total of 106 million euros.

The Facebook spokesperson did not elaborate further on the details of the deal. The French tax administration also did not give more details.

The Facebook spokesperson also said that since 2018, the company has decided to include its advertising sales in France in its annual accounts covering France.

As a result, Facebook’s total net income nearly doubled in 2019 from a year earlier to reach € 747 million, a copy of Facebook France’s 2019 annual accounts, filed with the French company register and viewed by Reuters.

Facebook France, which employs 208 people, refers to the French tax audit report in its 2019 annual accounts, claiming that it represented a tax adjustment of around 105 million euros. This includes a penalty of around 22 million, according to the annual accounts.

The French magazine Capital was the first to report the payment of tax arrears.

The Facebook spokesperson said the company paid € 8.5 million in income tax in 2019 in France, an increase of almost 50% from the previous year.

“We take our tax obligations seriously, pay the taxes we owe in all the markets we operate in and work closely with tax authorities around the world to ensure we comply with all applicable tax laws and resolve any disputes,” did he declare.

(1 USD = 0.8447 euros)

(Reporting by Mathieu Rosemain and additional reporting by Leigh Thomas; Writing by Geert De Clercq; Editing by Alison Williams and Jane Merriman)

    

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