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Facebook to cease channeling ad revenue via Ireland following tax outcry

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The move will apply to all countries in which Facebook now has an office to support sales to advertisers, Facebook's Chief Financial Officer Dave Wehner said in a statement.

Currently, advertising revenue supported by Facebook's local teams are recorded by its worldwide headquarters in Dublin, Ireland.

For years, Facebook has legally minimised taxes by funnelling non-US income to the Republic of Ireland, a jurisdiction with only 12.5 per cent corporation tax.

Facebook a year ago diverted more than €12 billion of global revenues to Ireland, attracting the ire of governments in Europe and further afield who argue its existing strategy deprives them of tax.

The changes will be implemented throughout 2018, with a view to them being completed by the first half of 2019. Facebook was careful to note that the new system would only apply in places where it already has a local office, and "this is a large undertaking that will require significant resources to implement around the world".

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Its headquarters in Menlo Park, California will be its USA headquarters and the offices in Dublin will be the site for its global headquarters.

Advertisements will be sold and recorded by "local teams" - effectively meaning that the company will pay tax in the country where the ads are sold.

BBC reports that the social media company came under fire after it had paid only £4,327 (€4,900) in the United Kingdom in 2014 - although the tax bill has risen substantially in subsequent years.

On the backdrop of the policies made by many countries and their government, companies are ordered to pay their raxes in time with right value.

The European Commission is looking into ways to tax digital companies like Facebook as it seeks to raise money from an industry that the commission has said provides less tax than it should.

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