Tech companies such as Facebook Inc. and Alphabet Inc. unit Google Inc. could soon pay higher taxes in the U.K. if the country's Treasury decides to tax their revenues rather than their profits, London's The Guardian reported.
In March, Chancellor Philip Hammond is expected to announce the results of a Treasury-led consultation launched in November 2017 on updating the tax system in step with online platforms' operations.
Mel Stride, financial secretary to the Treasury, said the significant value generated in the U.K. by tech firms is not taxed fairly, The Guardian reported.
He said the government is ready to unilaterally enact change in its tax system if reforms are not made internationally via the Organisation for Economic Cooperation and Development.
Facebook recently updated its tax structure, shying away from rerouting its advertising revenues through its Dublin international headquarters in favour of recording them in the countries in which they were earned.