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PayPal Stock Takes a Hit on Higher UK Tax Bill

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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.

The payment services provider said that it is paying €4.7 million for its fiscal 2017, amounting to $5.4 billion. In the previous year, the company had to shell out €181,749 in taxes for its business in the UK.

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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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