Facebook boss "happy to pay more taxes in Europe"

0 2

Mark Zuckerberg

Image Copyright
Drew Angerer

Legend

Mark Zuckerberg says Facebook wants tax reform

The Facebook boss says he accepts that tech giants may have to pay more taxes in Europe in the future and acknowledges people's "frustration" with the problem.

Mark Zuckerberg also said he supports the plans of the Organization for Economic Co-operation and Development think tank to find a global solution.

Facebook and others have been accused of not paying their fair share of tax in the countries where they operate.

But some say the OECD is moving too slowly towards its 2020 target.

In the UK, Facebook paid just £ 28,5 million in corporate tax in 2018, despite record sales of £ 1,65 billion.

At the time tax activist and MP Margaret Hodge said such a low bill was "outrageous", but Facebook said it paid what it owed.

Speaking at a conference in Munich this Saturday, Zuckerberg will say, "I understand there is frustration over the way tech companies are taxed in Europe.

“We also want tax reform and I am happy that the OECD is studying the issue. We want the OECD process to be successful so that we have a stable and reliable system in the future.

"And we accept that that means we have to pay more taxes and pay them in different places in a new framework. "

Image Copyright
Getty Images

The UK announced plans to introduce its own digital services tax in April, despite objections from the United States, in a move that could generate up to £ 500 million a year.

However, it is unclear how the resignation of Sajid Javid as chancellor - a big supporter of the tax - will affect the decision.

France has agreed to postpone its own digital sales tax, but only until the end of the year, pending a global agreement. Washington had threatened to impose tariffs on champagne and French cheese in retaliation.

What is a digital sales tax?

Many governments are concerned that US tech giants will avoid taxes in the European Union. They argue that taxes should be based on where the digital activity - browse the page - takes place, not where companies are headquartered.

In response, the United Kingdom and several other European countries have proposed new tax rules.

Britain, for example, would tax revenues from search engines, social media platforms and online markets at 2%. France's target is 3%.

But Washington trade officials say American companies are being unfairly targeted.

In January, US Treasury Secretary Steve Mnuchin threatened new tariffs on British automakers, arguing that the digital tax would be "discriminatory in nature."

This article appeared first on https://www.bbc.co.uk/news/business-51497961

Leave a comment

Your email address will not be published.