Facebook chief: We must pay more tax
FACEBOOK founder Mark Zuckerberg is to admit that his corporation must pay more tax in Europe.
He recognises concern over the issue and backed plans by the Organisation for Economic Co-operation and Development to find a global solution.
Zuckerberg, 35, will tell a conference in Munich today: “I understand that there’s frustration about how tech companies are taxed in Europe.
“We want the OECD process to succeed so that we have a stable and reliable system going forward.
“We accept that this may mean we have to pay more tax and pay it in different places under a new framework.”
Global efforts to stamp out tax avoidance among technology giants will be given a boost by the pledge.
Reforms
Zuckerberg will say that he agrees with reforms to update the rules on cross-border corporation tax, even though it may mean paying billions more into Britain’s coffers.
Zuckerberg, the world’s fifth richest person, will say that he understands the worry about how digital companies such as Facebook are taxed in Europe.
About 137 countries are trying to force tech giants to pay more tax on the products and services they sell, rather than on their profits, which companies can register in low-tax jurisdictions.
The proposed reforms are being led by the OECD, which claims the present international corporate tax rules are no longer sufficient “in an increasingly globalised world”.
The plans would break the system that says governments have the right to tax activities only when the company has a physical presence on their soil.
No agreement has yet been reached on how much the tech giants could be taxed. But the OECD said last night that it could lead to an extra $100billion (£76billion) being collected in global revenue.
Facebook paid £28.5million in corporation tax to the UK last year, despite its revenue hitting £1.65billion.
TOUGH immigration controls were agreed yesterday as Boris Johnson gathered his new Cabinet together for the first time.
The Prime Minister’s team approved the proposed Australianstyle points-based system, drawn up by Home Secretary Priti Patel.
A day after his dramatic reshuffle, Mr Johnson assembled his newlook Cabinet around the famous table in Number 10 for their first meeting.
Rishi Sunak, who stepped in as Chancellor following the shock resignation of Sajid Javid, took his seat next to Mr Johnson.
The Prime Minister’s chief adviser Dominic Cummings was said to be key to the Cabinet reshuffle, in which a host of senior members were replaced.
Officials said the members agreed upon the new immigration system, which will come into force from January 1 next year – once the UK’s transition out of the EU is finally completed.
Full details of the entry rules are expected to be published next week.
Mr Johnson’s spokesman said: “The system will be simpler and fairer and will not discriminate between countries and would return democratic control of immigration to the British people.
“The PM stressed that we must demonstrate that the UK is open and welcoming to talent from across the world.
“But the new system would end reliance on importing cheap, lowskilled labour, bringing down immigration numbers overall.”
The spokesman would not be drawn on any details of the policy, except to say it would provide the Government with the ability to control comes into the country.
Last month, the Migration Advisory Committee said replacing freedom of movement with a points-based immigration system after Brexit could cut economic growth and may only lead to small improvements in overall standards of living.
In his first intervention as Chancellor, Mr Sunak told ministers to continue searching for five per cent cuts in their Whitehall budgets to raise cash for the Government’s priorities.
A Downing Street spokesman said: “The Chancellor reminded all ministers that their departments who needed to find five per cent savings so money could be prioritised on other priorities.”
Mr Johnson told the meeting that the Government has a responsibility to “level up and unite the country”.
Mr Sunak and Mr Johnson are also understood to be considering loosening Mr Javid’s spending rules, that limit Government borrowing to allow a major splurge on public services and infrastructure.
The number of women attending Cabinet has fallen as a result of the reshuffle, from eight to seven, while the total number of ministers attending shrank from 32 to 26. But Number 10 insisted the Prime Minister is “committed to promoting a generation of talent that will be promoted further in the coming years”. A spokesman added: “The drive to promote female talent at parliamentary under-secretary of state and minister of state level will make it easier for the
Government to ensure that more Cabinet positions are held by women in the future.”
Ministers yesterday sought to play down suggestions of upheaval in the Government after Mr Javid’s shock resignation.
Some critics have suggested Number 10 is enforcing control over the Treasury with the new appointment.
But Communities Secretary Robert Jenrick denied Mr Sunak will be Downing Street’s “puppet”.
He hailed the new Chancellor as “one of the most talented people in politics today”.
Mr Jenrick insisted: “The Prime Minister is very much in charge.