American tax authorities have accused Facebook of deliberately “downplaying” the value of its assets as part of a scheme to pay less US tax, in a court case that could cost the social media company more than $9bn. The Internal Revenue Service claimed that Facebook made “attempts to downplay the value [of these intangible assets] for transfer pricing purposes”. Ireland’s headline corporate tax rate is 12.5 per cent, compared with the 35 per cent federal tax rate in the US at the time. Read More...
American tax authorities have accused Facebook of deliberately “downplaying” the value of its assets as part of a scheme to pay less US tax, in a court case that could cost the social media company more than $9bn. The Internal Revenue Service claimed that Facebook made “attempts to downplay the value [of these intangible assets] for transfer pricing purposes”. Ireland’s headline corporate tax rate is 12.5 per cent, compared with the 35 per cent federal tax rate in the US at the time.
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