Facebook, so pay less tax in Australia (pending web tax) – Corriere.it

Facebook made more than A $ 700 million (€ 455 million) in Advertising earnings Online sales increased last year, while Australians spent more time at home and online during the pandemic. I pay in Taxes Just $ 20.2 million (€ 13 million), it carries a large portion of the revenue on its parent company in the US. Documents submitted to the supervisory authority Australian Securities and Investments Commission (ASIC) reveals it Facebook Australia It generated $ 712.7 million (€ 463 million) in ad sales in 2020, an increase of 5.7% over the previous year. Since the social network frames its Australian activities as reselling the ad stock for its website and Instagram and Messenger apps and recording these resale expenses as payable to Parent company in California.

Income deducted from the tax authorities

This mega expense account allows for the company he founded Mark Zuckerberg To sharply reduce profits in Australia and keep domestic revenue out of the reach of the Australian Treasury. Then DiscountsIn 2020, Facebook announced net ad sales in Australia of $ 154.5 million (€ 100.4 million), 7.4% less than in 2019. A Facebook spokesperson said the company complied with the legislation and paid the correct amount for taxes. We take our own very seriously Tax liabilities He added that we are committed to supporting local communities and businesses in Australia.

Big technology and the web tax hypothesis

Big technology for some time In the crosshairs of the tax officer Also from European countries, because by placing the tax office in countries with more favorable taxes (for example Ireland which has a corporate tax rate of 12.5%), they can subtract the taxable income as it is produced. mechanism Tax evasion On whichEuropean Union, Which assumed a web tax rate of 21 percent. The United States of America I have proposed a tax of 15% on all multinationals in all OECD countries and at the level of One global tax That is being discussed these days. The European Union, led by Italy, France and Germany, approved the proposal and hopes to reach an agreement in principle at the Financial Group of Twenty, which will be held in Venice at the beginning of July. The Minister of Economy confirmed that Italy, the current president, is doing its utmost to ensure that a political agreement is reached there. Daniel Franco.

Code of Conduct and Pay for Content

In Australia, Facebook, like other sites that post other people’s content, is also grappling with the media challenge due to a new law (see the antitrust chief’s interview here). The new regulation forced social media to open negotiations with a number of media outlets on Payments to publish their content In its users’ news feed on its website and apps (read the agreement with News Corp here). The negotiations kicked off with the introduction in Australia of a mandatory code of conduct, drafted by ASIC, which establishes agreements between Facebook and The Google And individual media companies when the platforms host their content. Since then, Facebook has entered into separate contracts with the major media outlets in Australia.