Maung Aye, corporate solicitor and associate at Mackrell Turner Garrett, has commented on news that Twitter has appointed a tax expert to ensure it complies with European company and tax laws.
The appointment of Twitter’s first full-time tax manager is part of the firm’s extensive international expansion plan.
Based in the firm’s international headquarters in Dublin, the job of the expert would include overseeing the preparation and filing of all business tax returns.
Sky News has reported that the tax manager would be responsible for taxation affairs across Europe, the Middle East and Africa (EMEA) and is expected to “implement and monitor transfer pricing strategy.”
This is significant because leading US multinationals have in recent months faced increased UK parliamentary scrutiny over their transfer pricing policies – whereby goods or services are supplied and charged between arms of a multinational firm, sometimes across national borders and jurisdictions.
Last week the UK arm of Twitter filed abbreviated accounts for the year ended 31 December 2012 with Companies House.
UK profit for 2012 was listed as £108,907, up from £16,499 in the previous year, while the company’s taxation and social security liability also increased from £36,800 in 2011 to £326,949 in 2012.
Speaking to Sky News, Maung said: “There have been a number of significant changes and you can see the company’s tangible assets in the 2012 accounts have substantially increased to £504,595 from £2,629 in 2011.
Another factor to consider is whether the assets and equipment of the now dissolved TweetDeck Ltd were absorbed into Twitter UK Ltd so that the application can be continued for its users.”
Last December Twitter UK and its sister firm TweetDeck Ltd were fined by Companies House for failing to file their 2011 accounts on time.
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