Facebook boss has acknowledged the fact that tech companies may have to pay more tax in the future if they are to do business on the continent. He also acknowledged the frustration of the people due to the issue.
He also said that he had full beliefs that the Organization for Economic Cooperation and Development will find a global solution to the problem by finding out the exact cause and the solution thus achieved would be the best one for all the companies.
Facebook and some other giant companies have been accused of not paying the tax as they should be meaning that they have been found guilty of not paying enough tax in the European countries they operate.
According to the expert’s analysis, the steps taken by the OECD are not appropriate and the organization is way behind if has to strike a deal between the companies this year.
For example in 2018 in the UK Facebook recorded net sales of 1.65 billion British pounds but only paid a corporate tax of 28.5 million British pounds. The profit figures were a new record reached by the social media company.
During that time Member of Parliament Margaret Hodge strongly protested against such a low figure tax being paid by a global giant despite generating such high volumes of sales figures. Facebook defended itself by stating that it had paid what is owed.
Speaking in a conference in Munich the young billionaire entrepreneur stated that it was obviously frustrating for the people for the on the existing tax structure for the tech companies. He said that Facebook will readily accept the tax changes done by the OECD in Europe and thus all the misconceptions and the anger would be resolved.
The UK government is proposing to introduce a new type of tax called the digital services tax which would come in April.