Facebook is reportedly going to change its corporate structure so that it pays more tax in the UK, BBC News reports.
The company used to route sales through Ireland so that it paid a lower tax rate, but the BBC reports that it’s going to change its structure to book sales in the UK instead.
The BBC says that the change will mean Facebook pays more corporation tax in the UK than before. It’s all going to change in April, and the first tax bill affected will be in 2017.
It’s likely that Facebook’s decision to re-arrange its tax structure came after Google was criticised for a £130 million tax deal in the UK for the past 10 years of activity. Shadow chancellor John McDonnell claimed that Google’s effective tax rate in the UK was 3%, instead of the normal 20% corporation tax.