Facebook’s Ireland office has told the Irish Tax Tribunal it will pay a record €1.7m tax debt to the Irish authorities after it admitted that it failed to declare more than €1 million in profits from its digital advertising business.
The company has now paid €1,935,000 in back taxes to the tax authorities, the Irish Times has learned.
The €1-million tax debt was incurred by the company in 2016, according to the statement by Facebook Ireland, which was made public yesterday.
The Irish tax tribunal said it had “reiterated” its previous ruling that Facebook had not declared the tax liabilities because it did not intend to pay.
The tribunal said the tax debt could have been avoided by “regularly reporting” the tax liability to the US authorities.
In its latest ruling, the tribunal said that the tax burden on Facebook was “not negligible”.
Facebook did not respond to The Irish Time’s request for comment.
It is understood that the Irish tax authorities had previously asked Facebook to pay €750,000 to the government of the European Union, which paid the company €2.3 million in tax relief in the past year.
In the latest ruling from the tribunal, the tax authority said that Facebook was not in a position to pay this amount because it was “too late” to pay the amount.
It said that “the company has the power to correct the errors” and said it would “review” the matter.
In 2016, the company was accused of paying a tax debt of €1 billion in Ireland, but it has said that it paid it all back in full and it is now paying €1million.
“The Irish Tax Office believes that it has now made the necessary payments in full to Facebook, including the repayment of taxes,” the Irish Todays Times said.
Facebook has been under pressure in recent months to pay back tax on profits made in Ireland. “
It is hoped that the company will also make good the tax relief owed to Ireland by other foreign jurisdictions, as well as the EU.”
Facebook has been under pressure in recent months to pay back tax on profits made in Ireland.
The social media company was criticised for paying little tax in Ireland and Ireland’s tax authorities have criticised the company for not paying tax in other countries where it operates.
Facebook’s €1bn tax bill in Ireland is the largest of its kind in Europe.
In April, Facebook was accused by the European Commission of paying more than half a billion euros to a Luxembourg company called Adium for a scheme that was used to avoid taxes in Ireland on Facebook’s digital advertising revenue.
The tax tribunal ordered Facebook to repay €1billion to Ireland, and the company paid the money back in the form of a €1 per cent interest rate loan to Facebook.