Zuckerberg "happy to pay more tax in Europe"
Mark Zuckerberg has disclosed he is “happy to pay more tax in Europe”, following criticism that Facebook has not being paying enough taxes where they operate.
Despite generating a record £1.65 billion worth of sales in the UK in 2018, Facebook only paid £28.5 million in corporation tax.
Margaret Hodge, tax campaigner and MP for Barking, stated that such a low tax bill was “outrageous”.
The Facebook CEO has supported plans by the Organisation for Economic Co-operation and Development to develop a worldwide tax reform.
At present, the UK plans to introduce new digital services tax in April of this year, which is believed to generate £500 million each year.
It is argued that tax should be paid where browsing takes place, as opposed to where company headquarters are situated, which has led to the proposal of new legislation.
Britain currently hopes to tax the revenues of social media platforms such as Facebook at two per cent.
The resignation of Sajid Javid as chancellor of the exchequer, in addition to American opposition, could impact the policy.
In a conference in Munich today, Zuckerberg will say that “I understand that there's frustration about how tech companies are taxed in Europe.
"We also want tax reform and I'm glad the OECD is looking at this. We want the OECD process to succeed so that we have a stable and reliable system going forward.
"And we accept that may mean we have to pay more tax and pay it in different places under a new framework."
The OECD has been criticised for moving towards its goal of a 2020 reform too slowly.