Re: Facebook - a Ireland based company?
The big failure is that the European laws allows any business to declare its income in a single country. The goal was to allow small businesses to sell in the whole of Europe without having to declare its income in every single country, which would have been inefficient and prohibitive for most companies.
What should have been done instead is that the income can be declared in a single country unless there is another company controlled by the same entity in the country where the income was realized.
For Little Business Ltd., a company of five people in Ireland, it makes sense to let them declare in Ireland the few thousands £ they earn in UK; they could not otherwise afford to do business in the UK.
For Google, Facebook et al., who own large sales teams based in the UK that are already declaring in the UK incomes of a few millions, there is little reason to let them declare in Ireland the income from what they sell in the UK.
Of course, there are probably people, even UK politicians, who think that the current situation is working as intended, and that the goal is to force governments to compete on lower income taxes, leading to more business opportunities…