Facebook, among doubts about the payment of taxes in the United States, the European Union and other countries, is closing its holding company in Ireland, the epicenter of the controversy over its performance in tax matters, which is characterized by declaring income from its activity in multiple countries in Ireland, taking advantage of its low taxation for companies. So, in 2018, the Irish subsidiary of the social network, despite having some 15 billion profit declared in the country, only paid 101 million of dollars in taxes.
In total, in that year, Facebook declared as income in Ireland about 30 billion dollars, according to The Guardian. This amount is more than half of the company’s annual revenue in 2018, when it reached $ 56 billion. .
On the other hand, the company’s decision, which shows that it is moving in this direction, comes shortly after the United States Internal Revenue Service, the IRS, took the company to court claiming that owes more than 9,000 million dollars, which is related to your 2010 decision to shift your profits to Ireland. This complaint also comes after several years of investigation into Facebook in the United States for its payment of taxes.
Before its issuance of shares in the stock market in 2012, Facebook valued its intangible assets in 2010 at 6.5 billion dollars, but the IRS claimed that their real value was 21 billion dollars. After the closing of the holding company, Facebook International Holdings I Unlimited Company, which is currently made up of three companies, will return your intellectual property again To united states.
As they have stated from the social network, the closure of its holding company in Ireland is due to «part of a change that best suits our structure of operations. In preparation for the dissolution of the company, the assets of the Facebook Ireland holding company were distributed to its US parent.«. The company has also stated that they believe that this step «is consistent with recent and upcoming tax law changes that legislators are betting on around the world«.
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