Did Facebook Evade Taxe in Australia?

  Did Facebook Evade Taxe in Australia? Facebook generated $ 712,7 million in revenue from advertising in Australia last year, but only paid $ 20,2 million in taxes, according to new reports. Stating that advertising sales in Australia increased by 5,7 % compared to the previous year, the social media giant reportedly used a legal loophole to avoid paying 2,8 % tax. According to a report; Facebook showed its Australian company in last year's taxable income of $ 153 million. So how did Facebook do this? Facebook is charging its Australian business as a "seller" of its ads, demanding a "reseller fee" from it. This means that the Australian business has to pay a fee to the parent company in California. Last year, the Australian company, which generated $ 700 million in revenue, paid a $ 559 million reseller expense to the headquarters. This shows that $ 559 million was spent by the parent company in California, and the tax paid to Australia should be calculated on the remaining $ 153 million of income. According to the Australian Taxation Office (ATO), companies in Australia are required to pay a reduced corporate tax rate of 26 % in 2020-2021 and 25 % in 2021-2022.

Did Facebook Evade Taxe in Australia?

A Facebook spokesperson who said that the tax paid to Australia was correct said: “In recent fiscal years, we have paid income taxes in Australia at effective tax rates of well over 30 %. All of this complies with local tax laws. We take our tax obligations seriously and are committed to supporting local communities and businesses in Australia. " Tax avoidance taskforce No stranger to large companies looking to avoid tax, ATO has a structure called the "Tax Avoidance Task Force" to tackle the issue. Last year, the task force, which successfully implemented the multinational avoidance prevention law (MAAL), generated over $ 8 billion in additional taxable sales through restructuring. Did Facebook Evade Taxe in Australia?  

Source: Yahoo.Finance

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