Facebook Shutting Irish Units at Centre of Tax Dispute: Report

Facebook also reportedly moved billions of euros in profits back to the US from Ireland.

Facebook Shutting Irish Units at Centre of Tax Dispute: Report

The move to wind down the units started after the US Internal Revenue Service took Facebook to court

Highlights
  • Facebook companies around the world would pay units for the use of the IP
  • Facebook moved billions of euros in profits back to the US from Ireland
  • Facebook’s Irish holding paid $101 million (roughly Rs. 730 crores) taxes

Facebook has moved to wind down several Irish holding companies that had allowed it to shift billions of dollars in profit to the country, where it was lightly taxed, the Times of London reported, citing company documents.

The Irish companies were used to hold its intellectual property for international sales, and Facebook companies around the world would pay the units for the use of the IP, shifting much of the sales outside the US, the newspaper said. Facebook's main Irish holding company paid $101 million (roughly Rs. 740 crores) in taxes on profit of more than $15 billion (roughly Rs. 1,10,300 crores) in 2018, the last year records were available, the paper said.

The move to wind down the units started after the US Internal Revenue Service took Facebook to court, saying the social media company was shifting funds through Ireland to avoid US taxes, the Times said. Facebook also moved billions of euros in profits back to the US from Ireland, the paper reported.

“Intellectual property licenses related to our international operations have been repatriated back to the US,” Facebook said in a statement 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.”

© 2020 Bloomberg LP


Is Mi QLED TV 4K the best affordable smart TV for enthusiasts? We discussed this on Orbital, our weekly technology podcast, which you can subscribe to via Apple Podcasts, Google Podcasts, or RSS, download the episode, or just hit the play button below.

Comments

For the latest tech news and reviews, follow Gadgets 360 on Twitter, Facebook, and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel.

Further reading: Facebook
Wonder Woman 3 in the Works With Gal Gadot, Director Patty Jenkins
Bitcoin May Face Regulatory Scrutiny After Record-Breaking Rally, Experts Say

Related Stories

Share on Facebook Tweet Snapchat Share Reddit Comment
 
 

Advertisement

Advertisement

© Copyright Red Pixels Ventures Limited 2021. All rights reserved.
Listen to the latest songs, only on JioSaavn.com