The IPO stamped $ 104 billion for the Facebook set after the IPO
Facebook France is going to pay back $ 125 million (6 106 million) in taxes. Trade magazine Capital first reported the deal. French tax authorities raided Facebook offices in Paris in 2012 and then investigated taxes that did not cover operations between 2009 and 2018.
“This year facebook spokeswoman TechCrunch said: “We take our tax obligations seriously and work with tax authorities around the world to comply with all applicable tax laws and resolve any disputes.”
According to the investigation, Facebook has followed its effective tax rate in France by funding sales to other subsidiaries in various European countries.
This is a gray area, because the sales funnel is legal in another country. But you have to prove that no seller in France is selling to a French customer. Those agreements can be reclassified as French agreements.
Many tech companies have had to pay back taxes in France for a similar problem. For example, Google agreed to pay a $ 9,549 million fine and $ 510 million in refund in 2019. Similarly, Apple settled $ 572 million in back tax.
This is a new strategy for the French authorities. The struggle of the people can be avoided if companies compromise directly with the tax authorities. In this way, companies avoid some public setbacks and this speeds up the process. Amazon was the first company to settle in 2018.
“We pay all the taxes we pay in every market. Since 2018, we have changed our sales structure so that revenue from team-supported advertisers in France is now recorded in this country. This year, we are paying EUR8.46m tax revenue in France, which is almost 50% higher than last year, ”a Facebook spokesperson told TechCrunch.
More importantly, the company’s revenue in France increased from € 56 million to 38 9,389 million between 2017 and 2018, indicating approximately 600% revenue growth in 12 months.