Facebook sets aside €1bn for new Irish data fines as profits soar

The increased sum reflects the likelihood of more decisions on existing Irish DPC investigations against the social media giant in the coming year. Helen Dixon’s office has over 10 probes underway against Facebook, Whatsapp and Instagram.

In September, Whatsapp was fined €225m by the Irish DPC.

Facebook’s Irish accounts also say that international revenue booked through its Irish office grew €6.3bn to €40.6bn in 2020.

The company’s profit before tax in Ireland grew from €482m in 2019 to €890m, an increase of 85pc.

Now using its new rebranded name of Meta, Facebook’s accounting process offshores most of the declared revenue for tax purposes elsewhere.

It paid €267m in corporation tax here last year, compared to €173m in 2019.

However, the company says that it agreed with Revenue ‘to resolve certain tax matters relating to prior tax years’.

This, Facebook says, resulted in additional taxes of €35m.

The company says that its current tax effective rate for the year was 29.9pc.

“Ireland is an important hub for global innovation, where we continue to grow and invest through our international headquarters,” said Gareth Lambe, head of Meta (Facebook) in Ireland.

“Throughout the pandemic, we’ve seen people use our apps such as Facebook, Instagram and WhatsApp, to keep in touch with family and friends and build communities. We’ve also seen the positive impact our apps have for businesses and advertisers, many of whom have had to shift their operations online. As we look ahead and start building the metaverse, we’re excited to create more opportunities for businesses, developers and creators as well as grow our operations in Ireland.”