Wednesday, 26 June 2019

Facebook to Pay $100 Million in Italian Fiscal Accord

LONDON: Social media giant Facebook has agreed to pay more than 100 million ($114 million or roughly Rs. 800 crores) to end a fiscal fraud dispute, Italian tax authorities said.

Italy has already drawn similar agreements from Amazon, Apple, and Google, joining EU neighbours seeking a bigger tax take from multinationals previously able to use loopholes allowing the booking of profits in countries with more favourable tax regimes.

The accord aims to “end the disagreement relating to tax enquiries undertaken by the financial police (GdF) at the behest of the Milan prosecutor for the period 2010-2016,” Italy’s tax authority said in a statement.

The authority added that Facebook Italy would be “making a payment of more than EUR 100 million.”

Online retail behemoth Amazon agreed a similar deal last December while in May last year Google agreed to pay EUR 306 million to end a dispute relating primarily to 2009-2013 profits booked in Ireland.

Ireland has one of the lowest corporate tax rates in the European Union.

Apple had earlier, in December 2015, agreed to make payment of more than 300 million euros on Italian-generated profits dating back to 2008.

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