|The tech giant could be liable to pay from $3bn to $5bn in extra tax in the United States following the investigation by the tax agency into the way Facebook transferred assets to Ireland. The Internal Revenue Service (IRS) has been looking into whether Facebook deliberately deployed complex financial processes in order to minimize the amount of US tax to be paid.
According to Facebook’s quarterly financial filing, the tax agency issued the company with a “statutory notice of deficiency”, pointing out that it could have a “material adverse impact” on its balance. The company estimated the possible loss in its earnings report as $3bn to $5bn. Besides, Facebook would also be liable for interest lost, though no additional penalties were discussed.
In the meantime, Facebook spokesperson claims that the company complies with all applicable rules and regulations in the countries where it operates. The US tax agency started investigating Facebook 3 years ago over assets it had transferred in 2010 to its headquarters in Ireland. The European country is well known for its corporation-friendly tax structures, charging a corporate tax at the rate of 12.5%, compared to the rate of 35% in the United States and 21% in the United Kingdom.
The public learned about the investigation just a few weeks ago, when the Internal Revenue Service filed a lawsuit in San Francisco, suing the tech giant over access to records related to the transfer. The IRS investigation described the valuation of the assets as “problematic”, suggesting that Facebook had undervalued the assets to pay less tax. Besides, the tax agency has stated that Facebook has failed to attend 7 appointments at its office located 19 miles away from the company’s headquarters.
Sunday, July 31st, 2016
|Soooo.....when is the take down of Facebook gonna happen? Oh right, if you give out private info & rat out a pirate site or two you get a pass.|
Hey Facebook, you SUCK!!
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