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Facebook is paid an estimated Skr770,000 in taxes in Sweden though it is grumbled that the company earned more that it paid for as taxes

Sunday, 13 January 2013
Swedish officials are grumbling that it is not known how much money American social media site, Facebook is making in Sweden. But it is held that the company comfortably paid some Skr770,000 as taxes in Sweden 2012.

This amount is paid as company tax from Facebook for its operations in the country in 2012 and the question being asked is how big the company's advertising market is in Sweden. No one knows for sure, but some authorities and media outlets are speculating that Facebook could be making several hundred million of Swedish Krona, according to observers whom Swedish television spoke to.

Facebook told Swedish televising that the company is sure of following the laws and regulations of the countries it operates in. However, its European business is managed from Dublin and Irish corporate taxes are lower than those of Sweden are.

Facebook is not obligated to pay Sweden something extra, but there are those in Sweden who are fuming and feel that the rules Facebook kind of business model should change. Swedish television has spoken with such people, such as, the spokespersons for the opposition Left Party, and the Green Party, who think that money earned in Sweden should be taxed to Sweden rates.

"A company in Sweden, which has established itself in this way, should also pay taxes in Sweden, and not to carry out such earnings out of the country. This is where the tax evasion and advanced tax planning come in," says Green Party's tax policy spokesperson, Mats Pertoft to Swedish television.

According to Swedish television, Facebook is doing brisk business in Sweden with advertising revenues of over Skr22 billion in 2011 and profit of over Skr11 billion before taxes. Some of the money comes from all the Swedish companies that buy ads from Facebook. Facebook is said to not want to give Swedish television what the company earns on its Swedish advertising sales.

But several industry analysts estimate that the company can pull in as much as several hundred million Krona from the Swedish market.
by Scancomark.com Team

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