How did Facebook get the tax rate … 1%

Facebook’s property rights should be returned to the United States after the US tax authorities, the IRS, said the company owed $ 9 billion in taxes. To do so, the social media giant is using Irish holding companies to optimize billions in profits and avoid paying taxes in hundreds of other countries.

How? What is ‘or’? Facebook companies around the world were paying the Irish holding company for its intellectual property rights.

As a result, Facebook International Holdings I Unlimited, one of Facebook’s three holdings hosted in Ireland, reported $ 30 billion in sales in 2018, while Facebook’s global sales were $ 56 billion. indique The Guardian. What raises suspicion …

Google has transferred its property rights from Ireland to the United States

This is the latest year that data is available, as the Irish subsidiary of the company paid $ 101 million in taxes in 2018, recording a profit of over $ 15 billion. Or … tax rate below 1%.

According to figures from the Paris-based Organization for Economic Co-operation and Development (OECD), its effective tax rate has exceeded 20% over the past five years. This is in line with the global average of 23%. ). According to the results published by the company, its effective tax rate has been reduced from 13 per cent by the end of 2018 to 25 per cent in December 2019.

Facebook’s move to accuse the U.S. Internal Revenue Service (IRS) of more than $ 9 billion in arrears in connection with a 2010 decision to shift profits to Ireland. .

Prior to the 2012 IPO, Facebook was valued at $ 6.5 billion in 2010. But the IRS says its real value was $ 21 billion.

READ  Amazon Prime Video is making a splash on social media after uniting Ireland on Saturday

Google also transferred from Ireland to the United States last January, allowing American companies to send their international profits to shelters in Ireland before an Irish tax process could end. Taxes like Bermuda.

Five years ago, Ireland agreed to end the system under international pressure. But the companies had to comply with this until the end of 2020.

Written By
More from Jake Pearson

Hedge fund founder arrested in Neyman Marcus case

Here are the main headlines about Fox Business Flash. Check out what...
Read More

Leave a Reply

Your email address will not be published. Required fields are marked *