The company is likely to pay millions more in U.K. taxes after
making changes to its corporate structure that will stop revenue earned
in the U.K. from being routed through Ireland.
Facebook had been accused of "profit shifting"
a common practice for multinational companies operating across Europe.
After establishing a headquarters in low-tax countries, such as Ireland
or Luxembourg, firms funnel profits from around the region to these
jurisdictions in order to slash their tax bills.
Facebook (FB,Tech30) faced a huge amount of criticism over the issue after paying just £4,327 ($6,100) in taxes in the U.K. in 2014.
"We felt this change would provide transparency to Facebook's operations in the U.K.," a Facebook spokesperson said.
"The new structure is easier to understand and clearly recognizes the
value our U.K. organization adds to our sales through our highly skilled
and growing U.K. sales team," the spokesperson added.
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