Facebook to Pay Millions of Pounds More in U.K. Tax
- Company to quit routing its largest ad clients through Ireland
- Changes to be put in place next month, according to statement
Why Facebook Will Pay Millions More in U.K. Taxes
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Facebook Inc. will stop routing advertising sales of its largest U.K. clients through Ireland, increasing its British tax bill by millions of pounds in a bid to improve transparency after facing criticism on tax avoidance.
Changes will be put in place in April, with the higher tax bill to be paid next year. Smaller business sales, where advertising is booked online with no staff intervention, will still be routed through the company’s Ireland offices, which will remain the firm’s international headquarters.