Excerpts from article:
...SAN FRANCISCO - Facebook Inc is slated to begin a tax trial in a San Francisco court on Tuesday, as the Internal Revenue Service tries to convince a judge the world's largest social media company owes more than $9 billion linked to its decision to shift profits to Ireland.
...The IRS argues that Facebook understated the value of the intellectual property it sold to an Irish subsidiary in 2010 while building out global operations, a move common among U.S. multinationals.
...From 2010 to 2016, Facebook Ireland paid Facebook U.S. more than $14 billion in royalties and cost-sharing payments, according to the court filing.
..."Facebook Ireland and Facebook's other foreign affiliates - not Facebook US - led the high-risk, and ultimately successful, international effort to sell Facebook ads," the company said in a pre-trial memorandum.
...If the IRS prevails, Facebook would face an additional federal tax liability of up to $9 billion, plus interest and any penalties, the company estimated in a recent securities filing.
Submitted 1520 days ago
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