Facebook reached out to its wallet to normalize its status. In fact, the social network Agreed to pay 104 million euros According to Capital to the French tax authorities. The pain is high but could actually be even higher.
Facebook would actually negotiate with French authorities to reach this figure. This €104 million debt, 22 million would actually be a late payment penalty. This covers all taxes that Facebook didn’t pay in France from 2009 to 2018. Facebook had a favorable financial arrangement in Europe by paying its taxes in Ireland. While that’s still partly the case, the American public is now smarter about reporting its income. But as Capital points out, Facebook will still only report half of its income in France, thus partially avoiding tax.
In 2019 the company declared 747 million euros to the tax authorities, However, these real revenues could easily exceed one billion euros. In the 2017/2018 financial year, Facebook decided to adjust its situation for the year, declaring 57 million euros to the tax authorities. As a result, the site paid just under 9 million euros in taxes during this period.
Facebook makes up for its behavior
Facebook is trying to stabilize its situation, even if it means paying a fine. This transaction of 104 million euros has an immediate impact on the company’s accounts due to the update of its 2019 results. 88 million missing. Therefore, the company is trying to atone for its behavior after the many scandals that tarnished its image in the past. If this maneuver was well calculated, it should still be congratulated.
Mark Zuckerberg’s social network isn’t the only member of GAFA to have its hands in its pockets; Apple has also put itself in order by paying 500 million euros to the French tax authorities, as has Google, whose bill has climbed to a billion euros since last year.
Source : Capital city
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