Facebook Inc. will stop routing advertising sales of its largest U.K. clients through Ireland, increasing its tax bill by millions of pounds in a bid to improve transparency after facing criticism on tax avoidance.
On Monday Facebook will inform its larger U.K. customers that from April they will receive invoices from Facebook U.K. and not Facebook Ireland, a spokesman for the company told Bloomberg in an e-mailed statement.
The overhaul of tax structure comes after increasing global pressure on its tax affairs and as a reaction to changing tax rules, the BBC, which first reported the news said, citing unidentified sources.
Her Majesty's Revenue & Customs , the U.K. tax agency, said it does not comment on individual taxpayers, but said in an e-mailed statement that it "ensures that all multinationals pay the tax due under U.K. law and we do not settle for a penny less.