Facebook shutting Irish units at centres of tax disputes

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Facebook Inc has moved to wind down a number of Irish holding firms that had allowed it to shift billions of {dollars} in revenue to the nation, the place it was frivolously taxed, the Times of London reported, citing firm paperwork.

The Irish firms had been used to carry its mental property for worldwide gross sales, and Facebook firms world wide would pay the units for the use of the IP, shifting a lot of the gross sales outdoors the US, the newspaper mentioned.

Facebook’s principal Irish holding firm paid $101 million in taxes on revenue of greater than $15 billion in 2018, the final 12 months data had been out there, the paper mentioned.

The transfer to wind down the units began after the US Internal Revenue Service took Facebook to courtroom, saying the social media firm was shifting funds by Ireland to keep away from US taxes, the Times mentioned. Facebook additionally moved billions of euros in earnings again to the US from Ireland, the paper reported.

“Intellectual property licenses related to our international operations have been repatriated back to the US,” Facebook mentioned in a press release to the Times. “This change, which has been effective since July this year, best aligns corporate structure with where we expect to have most of our activities and people. We believe it is consistent with recent and upcoming tax law changes that policy makers are advocating for around the world.”

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