PayPal stock (NASDAQ: PYPL ) was declining more than 2% on Monday as the company has hit with a higher UK tax bill for 2017 than the one it had to pay last year for its fiscal 2016.
PayPal stock was affected by the move as the company said in the filing that the HMRC had been "reviewing the company's direct tax position." The company added that this process was now complete, resulting in a higher tax bill in the UK.
"As a consequence, the company has agreed and settled its outstanding liabilities and as a result is not subject to any current enquiries." A spokesperson for PayPal did not comment further on the matter.
The news was unveiled after chancellor Philip Hammond revealed that there will be added pressure on large tech companies with the digital services tax as many companies are doing channel sales through other countries such as Ireland to avoid a sizable tax bill.
PayPal's UK business records its revenues from services it provides to other divisions within the group in addition to its UK marketing and staffing budgets.
PYPL stock was down about 2.4% on Monday.
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