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Facebook shut down several Irish holding companies that allowed the country to convert billions of dollars in profits, where it was easily taxed, the Times of London reported, citing company documents.
Used by Irish companies for international sales to retain its intellectual property, and Facebook Companies around the world pay units for IP usage, converting more sales outside the US, The newspaper said. Facebook’s major Irish holding company paid $ 101 million (approximately Rs 740 crore) in taxes on profits of $ 15 billion (approximately Rs 1,10,300 crore) in 2018, with records available last year, the paper said.
After the U.S. Internal Revenue Service took Facebook to court, the move to shut down units began, with the Times reporting that the social media company is transferring funds through Ireland to avoid U.S. taxes. Facebook has also moved billions of euros in profits back from Ireland to the US.
“Intellectual property licenses related to our international operations have been returned to the United States,” Facebook said in a statement to the Times. “This change, which has been in effect since July this year, will make the corporate structure better adjusted to where we expect it to have more of its operations and people.
© 2020 Bloomberg LP
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