Facebook France’s turnover practically doubled in 2019 to reach 747 million euros, according to a copy of the annual accounts that Reuters was able to consult.
The Facebook subsidiary in France has agreed to pay 106 million euros in back taxes and penalties following an in-depth tax audit covering the years 2009 to 2018, the group said on Monday August 24. American, confirming information from the magazine Capital. France, which pleads for an overhaul of the taxation of digital multinationals, believes that large groups like Facebook, Google or Apple pay too little tax in relation to the income and profits they earn there.
A Facebook spokesperson gave no details on the terms of the agreement reached with the tax authorities. For its part, the General Directorate of Public Finances (DGFiP), also contacted by Reuters, declined to comment, citing tax secrecy. The Facebook spokesperson, however, clarified that the company had decided since 2019 to include advertising revenue from French advertisers in the accounts of the local subsidiary. Its turnover thus practically doubled in 2019 to reach 747 million euros, according to a copy of the annual accounts that Reuters was able to consult.
Facebook France, which employs 208 people, mentions the existence of the tax audit in its 2019 annual accounts, specifying that it resulted in an adjustment of approximately 105 million euros. This amount includes a penalty of some 22 million euros, the document said. The Facebook spokesperson added that the company would pay € 8.46 million in income tax this year, which is equivalent to “an increase of almost 50% compared to last year”.