Facebook agrees to pay France $125 million to settle dispute over 10 years of back taxes
- 25th August 2020
- Posted by: Hakeem
- Category: Companies
Facebook will pay the French government €106 million ($125 million) in back taxes to settle a dispute that began with a raid on the tech company’s Paris offices in 2012.
The back taxes cover a period from 2009 to 2018, a decade of revenues that has been scrutinized by French tax authorities since the 2012 raid.
The social media giant also said that it was paying €8.46 million in tax revenue this year in France, which is a nearly 50% increase on last year.
“We pay the taxes we owe in every market we operate,” a Facebook FB, +1.64% spokesperson said. The spokesperson also noted that, since 2018, the company has changed its selling structure so that revenue from advertisers supported by their French offices is now recorded in France.
Facebook isn’t the first tech company to face pressure from French tax authorities. Other American tech giants that are active in France have reached similar settlements. Google GOOGL, +0.60% and Apple AAPL, +1.19% both reached tax settlements in 2019 and Amazon AMZN, +0.69% did in 2018.