Nothing is going well anymore Tiktok. The Chinese social network, which has been involved in legal proceedings to avoid being banned in the US, has also drawn the ire of Europe. After an investigation by Old Continent, the platform admitted and removed the functionality that allowed you to be paid for watching videos. A hard blow that didn’t come alone. This time, the events are happening in France. TikTok’s French subsidiary, which opened in 2020, He deliberately declared less than he should have so that he would pay less tax..
Its turnover will reach 63.6 million euros in 2023 4.8 million net profit. Either way, a very good score approximately 45% increase Compared to 2022. However, according to the French administration, these amounts should be much higher. Indeed, the majority of TikTok’s revenues come from Advertisements brands pay to be distributed, Not declared in Francebut in Ireland. That’s what Meta or Google do, for example.
TikTok may not have reported all of its revenue to French tax authorities
A way to reduce your tax bill. A tax audit therefore it has been ongoing since October 2023. While waiting for the results, TikTok France secretary general Eric Garandeau maintains that everything is fine: “The parent company is registered in the Cayman Islands under the Westminster system, so it is not subject to Chinese or American law. It then respects the law of each country in which it operates, primarily European law in Europe and French law in France.“.
And there’s no shame in the arrangement that barely conceals the desire to do ittax optimization. “TikTok pays taxes in every country it operates in: in Europe, tax consolidation is done in London, TikTok in the UK, and TikTok SAS is subject to French taxes.“, adds Eric Garandeau. Time will tell whether the explanations will convince the investigators.
Source : Informed
