Facebook to pay $125 million in back taxes to France

PARIS (AP) — Facebook’s French subsidiary has agreed to pay 106 million euros ($125 million) in back taxes and penalties following persistent government efforts to get online giants to pay more taxes where y make ir money.

agreement came after French tax authorities carried out an extensive audit of a dece of Facebook’s operations in country, from 2009-2018, a company spokesperson said Monday.

spokesperson, who was t authorized to be publicly named according to Facebook policy, said company “takes its tax obligations seriously” wherever it operates.

French tax department would t comment on deal, citing right to tax secrecy.

Facebook’s French revenues soared last year after company decided to include vertising income from French companies in its local accounting declarations, inste of declaring m in low-tax Ireland, where Facebook’s international operations are based.

As a result, Facebook will pay 8.4 million euros in profit taxes in France this year, about 50% more than last year, spokesperson said.

That change came in wake of efforts from French President Emmanuel Macron and his government to press online powerhouses like Facebook, Google and Amazon to pay more taxes locally.

push has led to a tit-for-tat tax battle with United States.

France imposed a 3% digital services tax on global techlogy giants, and last month Trump ministration anunced plans to impose taxes on $1.3 billion worth of French imports, including handbags and makeup, in retaliation.