Bengaluru, NFAPost News Service: Faced with a barrage of criticism in Britain for underpaying corporation tax in 2018, Facebook Inc founder Mark Zuckerberg might be prepared to pay more tax in Europe in future.
“I understand that there is frustration about how tech companies are taxed in Europe. We also want tax reform and I am glad the OECD is looking at this. We want the OECD process to succeed so that we have a stable and reliable system going forward. And we accept that may mean we have to pay more tax and pay it in different places under a new framework,” Proactive news portal.
Facebook revealed that it had paid just £28.5 mln of corporation tax in 2018, despite booking UK sales of £1.65bn.
The European countries, Britain and France, are respectively planning a two and a three per cent levy on the revenues of search engines, social media groups and online marketplaces from April.
The Donald Trump administration, however, has not taken the move by the European nations sportingly and threatened retaliatory action. It alleged that the technology companies, predominately based in United States, are being unfairly targeted.
Facebook has been reporting slowed growth for the fourth straight quarter under 30 per cent. It had reported sales growth of 24.7 per cent to $21.08bn in its fourth quarter results.
The operating margins of the company dragged down after total costs and expenses had surged 34 per cent to $12.22bn.
The social media giant was hit by a spate of regulatory challenges last year. And also was affected by a $5bn US penalty in July due to the Cambridge Analytica scandal.
Netanyahu Flays Facebook Treatment of Likud Party
Meanwhile, Israeli Prime Minister Benjamin Netanyahu has lodged a complaint against Facebook telling Zuckerberg that the social media platform had worked against his Likud party in the recent elections.
A week ahead of September election, Facebook had suspended Netanyahu’s bot for 24 hours, which he allegedly used to send automatic messages to Likud activists. The suspension was sparked by a message from Netanyahu’s account that said “The Arabs want to destroy us all – women, children and men.”
Netanyahu reportedly has asked Zuckerberg to ensure that Facebook treats all parties equally prior to March election.
Facebook also is facing charges by other rightists who accused the social media platform for suspending their accounts far more often than it suspends left-wing ones in recent months.
“We are constantly talking with leaders worldwide,” a company spokesperson said. “Mark stressed in this conversation that Facebook is a platform open to all ideas.”