Facebook is overhauling its U.K. tax structure and is set to pay millions of dollars more in tax to the country in response to increasing global pressure over its tax affairs.
In an internal memo to staff reported by the BBC, Facebook said that it will stop routing British advertising revenue through Ireland, making the money subject to British corporation tax. The company’s prior tax arrangement was widely criticized after it emerged it had only paid $6,117 to the U.K. in corporation tax in 2014.
The memo says the changes will be put in place this April: “In light of changes to tax law in the UK, we felt this change would provide transparency to Facebook’s operations in the UK,” it said. “The new structure is easier to understand and clearly recognises the value our UK organization adds to our sales through our highly skilled and growing UK sales team.”
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