Facebook to close Irish holding companies

At the  centre of tax dispute

Facebook is winding up Irish holding companies it has used to channel billions of profits to avoid paying taxes in the US, the UK and hundreds of other countries. The company’s main Irish subsidiary paid $101m (£75m) in tax while recording profits of more than $15bn in 2018, the last year for which records are available. Facebook companies around the world paid the Irish holding company for use of its intellectual property. Facebook International Holdings I Unlimited Company recorded revenue of $30bn in 2018, more than half of Facebook’s total global turnover of $56bn.

The company’s decision to close the Irish divisions and return its intellectual property to the US came shortly after the US Internal Revenue Service (IRS) took the company to court claiming it owed more than $9bn linked to its 2010 decision to shift its profits to Ireland. Before its stock market flotation in 2012, Facebook valued its intangible assets at $6.5bn in 2010, but the IRS claimed the true value was $21bn.

https://www.theguardian.com/

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