Contact Your Financial
Adviser MONEY MAKING MC
08 July 2016
The
US Internal Revenue Service has sued social networking giant Facebook for the
delay in sharing documents related to transferring its assets to Ireland in
2010 to cut corporate taxes.
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Ireland’s
top corporate tax rate is 12.5%, much lower than the US 35%, the Wall Street
Journal reported on Friday.
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The lawsuit is part of an investigation into
whether some of those assets were undervalued “by billions of dollars,” the
report added.
In
2010, Facebook entered into agreements with Facebook Ireland Holdings Unlimited
to transfer the rights to its “online platform” and its “marketing intangibles”
outside the US and Canada, said the lawsuit filed in US District Court in San
Francisco this week.
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The
company also entered into a cost-sharing agreement with the Irish subsidiary to
cover future development.
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Facebook, however, rejected the lawsuit,
saying that “Facebook complies with all applicable rules and regulations in the
countries where we operate.”
According
to the tax authorities, they went to court because Facebook has not responded
to its requests and the statute of limitations on its probe which expires on
July 31. The
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Facebook was ordered to produce the records
on June 17 but “failed to appear.”
The
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