Re:Spain planning on going ahead with ‘Google tax’ despite U...
by pjc50 on Friday December 06, 2019 @01:56AM
(#21719779)
Facebook may be listed and headquartered in the US, but it's actually lots of companies, like most multinationals.
Facebook customers in Europe pay Facebook Ireland, who are subject to 12.5% corporation tax. Facebook Ireland in turn pays "licensing" fees to Facebook Cayman Islands, where there is no corporation tax and high bank secrecy.
Remember the Vodafone tax scandal? You might think that as a predominantly British company (spinoff of Racal in the 80s) listed in the uk, they ought to pay tax on the UK profits. Instead most of the profits appear in Luxembourg.
Facebook customers in Europe pay Facebook Ireland, who are subject to 12.5% corporation tax. Facebook Ireland in turn pays "licensing" fees to Facebook Cayman Islands, where there is no corporation tax and high bank secrecy.
Remember the Vodafone tax scandal? You might think that as a predominantly British company (spinoff of Racal in the 80s) listed in the uk, they ought to pay tax on the UK profits. Instead most of the profits appear in Luxembourg.