Facebook to pay larger UK tax bill

(MENAFN- ProactiveInvestors - N.America) Facebook (NASDAQ:FB) is going to pay more tax in the United Kingdom because of plans to stop re-routing advertising revenues through the Republic of Ireland.

The social media group which has faced scrutiny over the amount of tax it pays will now put revenues generated from adverts for major UK customers through its books in this country.

It means that adverts paid for organisations by Tesco Sainsbury Unilever and WPP would now be subject to UK tax.

Potentially it marks a significant change in the amount of tax paid by Facebook.

Corporation tax is charged at 20% of profits in the UK whereas the rate in Ireland is 12.5%.

The social media group reportedly paid just over 4300 in UK taxes in 2014 and according to a Channel 4 report HMRC paid for 27000 ads placed on Facebook in 2015.