Facebook to pay 104 mn euros in back taxes in France after 10-year audit

Facebook’s French subsidiary has agreed to pay out additional than 100 million euros ($118 million) in back taxes, including a penalty, following a ten-yr audit of its accounts by French tax authorities, the enterprise said on Monday.

France, which is pushing difficult to overhaul global tax regulations on electronic providers these kinds of as Facebook, Alphabet’s Google, Apple and Amazon, has said the big tech groups pay out much too very little tax in the place wherever they have considerable product sales.

Latest global tax regulations lawfully enable providers to funnel product sales created in regional markets in Europe to their regional headquarters. Some of the tech providers, including Facebook, have European or global headquarters dependent in nations around the world with comparatively minimal corporate tax charges, these kinds of as Ireland.

A Facebook spokesman said French tax authorities carried out an audit on Facebook’s accounts about 2009-2018 interval, which resulted in an settlement by the subsidiary to pay out a whole 106 million euros.

The Facebook spokesman did not elaborate even further on the specifics of the settlement. France’s tax administration also did not give additional specifics.

Facebook’s spokesman also said that due to the fact 2018 the enterprise had made a decision to consist of its promoting product sales in France in its yearly accounts masking France.

As a final result, Facebook’s whole net income almost doubled in 2019 from a yr before to 747 million euros, a duplicate of Facebook France’s 2019 yearly accounts, submitted with France’s providers registry and seen by Reuters, showed.

Facebook France, which employs 208 folks, refers to the French tax audit report in its 2019 yearly accounts, declaring it amounted to a tax adjustment of about one hundred and five million euros. This features a penalty of about 22 million, the yearly accounts showed.

French magazine Money was very first to report the payment of back taxes.

Facebook’s spokesman said that the enterprise paid eight.5 million euros of profits taxes in 2019 in France, an increase of almost 50% from a yr before.

“We choose our tax obligations very seriously, pay out the taxes we owe in all markets wherever we work and perform closely with tax authorities all around the globe to make positive we abide by all applicable tax rules and resolve any litigation,” he said.