Facebook to wind straight down Irish unit amid US tax dispute
31 December, 2020
Facebook confirmed on Wednesday it had been closing it has the Irish subsidiaries in the center of a good dispute on income shifting to avoid taxes in the United States.
The California tech giant acknowledged the winding down of Facebook Ireland Holdings Unlimited Provider amid a dispute with US tax authorities, which claimed the company owed billions in taxes by improperly shifting profits offshore.
A Facebook spokesperson said the approach was "portion of a change that best aligns with this operating structure" and that the holdings of the three subsidiaries were "distributed to its US parent company".
Facebook has disputed the promises from US tax authorities looking for some $9 billion for allegedly undervaluing intellectual property assets used by the social network.
But it noted that these assets were repatriated in July in a move that "best aligns corporate structure with where we have a much the majority of our activities and folks".
Facebook says it has paid a lot more than $11bn globally in tax over the former 3 years and that its effective taxes rate in the last five years exceeds 20 per cent.
The news headlines comes amid stalled negotiations on a fresh global tax treaty that could allocate profits of multinational organizations including tech giants and efforts by some countries to unilaterally impose digital taxes predicated on revenues.
In November, some 75 important tech players, including Google and Facebook, supported a French initiative committing them to building a "good tax contribution" in countries where they operate.
Source: www.thenationalnews.com
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