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Facebook faces tax probe over transfer of assets to Ireland

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By Euronews
Facebook faces tax probe over transfer of assets to Ireland

<p>The US tax authorities say Facebook may have unfairly cut its tax bill by understating by “billions of dollars” the value of intellectual property it transferred to Ireland in 2010.</p> <p>The Internal Revenue Service (<span class="caps">IRS</span>) is seeking a court order requiring the social media network to hand over documents and records. </p> <p>The transfer would have boosted taxable profits in Ireland, which has a corporate tax rate of 12.5 percent, and reduce taxable income in the US where it is at least 35 percent.</p> <blockquote class="twitter-tweet" data-lang="en"><p lang="en" dir="ltr">US tax office <span class="caps">IRS</span> investigating Facebook over billions $ asset transfer to Ireland <a href="https://t.co/CFzkg8vigN">https://t.co/CFzkg8vigN</a> via <a href="https://twitter.com/lawdotcom"><code>lawdotcom</a></p>&mdash; Grzegorz Piechota (</code>g_piechota) <a href="https://twitter.com/g_piechota/status/751389922934784000">July 8, 2016</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> <p>Facebook denied any wrongdoing.</p> <p>Its tax adviser, the accounting firm Ernst & Young, which calculated the value of the transfered assets, would not comment. The <span class="caps">IRS</span> has called the valuation “problematic”. </p> <p>Through the court order the tax people are also seeking information on why Facebook made Dublin its international headquarters and main international business unit. </p> <blockquote class="twitter-tweet" data-lang="en"><p lang="en" dir="ltr"><span class="caps">IRS</span> demanded tax deal business records, Facebook responded with 3 e-mails <a href="https://t.co/M2scA39fnz">https://t.co/M2scA39fnz</a> by <a href="https://twitter.com/cfarivar"><code>cfarivar</a></p>&mdash; Ars Technica (</code>arstechnica) <a href="https://twitter.com/arstechnica/status/751428460816531456">July 8, 2016</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script>