110898510 gettyimages 1178141587

Picture copyright
Drew Angers


Mark Zuckerberg says wants tax reform

The owner of Facebook said he accepted that tech giants might have to more in Europe in the future and acknowledged that people were "frustrated" by the matter.

Mark Zuckerberg also said that he supports the initiative of the Organisation for Economic Co-operation and Development [OECD], a think tank, to find a global solution.

Facebook and other companies have been accused of failing to pay fair taxes in the countries where they operate.

But some say the OECD is moving too slowly towards achieving the goals of the 2020 agreement.

In the UK, despite paying a record £ 1.65 billion in sales in the UK, Facebook paid only £ 28.5 million in corporate taxes in 2018.

At that time Tax activist and MP Margaret Hodge says such a low bill is "heinous", But Facebook said it had repaid.

"I know how frustrated European tech companies are with taxes," Zuckerberg will say at a conference in Munich on Saturday.

"We also want tax reform, and I am glad that the OECD is studying this issue. We hope that the OECD process will be successful so that we have a stable and reliable system.

"We accept that this may mean we have to pay more taxes and pay the taxes in different places under the new framework."

Picture copyright
Getty Images

The United Kingdom says that despite the United States' opposition, it plans to begin levying its own digital services tax in April, a move that could generate up to 500 million pounds a year.

However, it is unclear how Sajid Javid's resignation as prime minister [a major supporter of taxes] will affect the move.

France has agreed to postpone its digital sales tax until the end of the year until a global agreement is reached. Washington threatened tariffs on French champagne and cheese in retaliation.

What is digital sales tax?

Many governments worry that US tech giants are avoiding tax in the EU. They believe that taxes should be based on where the digital activity [browse pages] took place, not where the company's headquarters are located.

In response, the UK and several other European countries introduced new tax regulations.

For example, the UK will tax 2% of revenues from search engines, social media platforms and online markets. France's target is 3%.

But Washington trade officials say U.S. companies are being unfairly attacked.

In January, US Treasury Secretary Steve Mnuchin threatened to impose new tariffs on British automakers, saying digital taxes would be "discriminatory."

Leave a Reply

Your email address will not be published. Required fields are marked *