Facebook is set to reward its U.K. employees with bonuses totaling to about £280 million ($396 million) in its effort to offset the tax it is required to pay the U.K. Treasury. Employees of the social media giant will receive their monies for the next three years.
Every Facebook employee based in England will get an average of £775,000 ($1.1 million). Zuckerberg's company will treat it as a taxable expense.
The news came a few days after the tech company has restructured its operations in Britain. It claimed that this move was to "provide transparency to Facebook's operations in the U.K."
Facebook also announced on Friday that it would change its tax set up by not diverting profits anymore from its biggest advertisers in Britain through Ireland, where there is lower corporate tax.
The Silicon Valley giant was criticized in 2015 after the expose' of its 2014 tax bill which amounted to only £4,327 or just $6,128. This is the result of a "Double Irish" tax set up that channeled the company's advertising revenues through its office in Ireland.
Beginning in April, the social media giant's biggest U.K. customers will be billed from the company's U.K. offices and not from its Ireland operations.
"What this means in practice is that UK sales made directly by our UK team will be booked in the UK, not Ireland. Facebook UK will then record the revenue from these sales," a company memo said as reported by the BBC.
"In light of changes to tax law in the UK, we felt this change would provide transparency to Facebook's operations in the UK," the memo added.
The annual profit of Facebook stands at $4 billion, but it has not released its U.K. earnings yet. Its latest tax skirting methods have further frustrated British authorities after government information revealed that its Treasury department pays the tech giant more in advertising placements than it receives in taxes.
