Facebook says goodbye to some Irish subsidiaries that have been a part of their tax schemes. Thanks to these constructions, the social media company had to pay less taxes.
The Irish company Facebook owns the intellectual property over Facebook. Other divisions of the company paid the Irish arm a license fee to use. So Facebook kept its earnings in the US and paid taxes on that money in Ireland. The Times accounts indicate that Facebook in practice made more than $ 15 billion in profits in 2018, with only $ 101 million paid in taxes. This amounts to less than 0.7 percent.
Facebook now informs The Times that the company’s intellectual property has been returned to the United States. As a result, the company is expected to pay more taxes in the United States. The decision is believed to be in response to a lawsuit brought by the US tax authorities against Facebook earlier this year. The social media company is accused of tax evasion. Tax authorities want Facebook to pay billions of dollars in back taxes.
