Technology

Fb To IRS: Refund Me, I'm Irish!

Facebook Is Launching a News Section -- and Will Pay Some Publishers Millions



Lengthy-time Slashdot reader theodp writes: Among the many methods featured in a 2012 Metropolis Pages story on The 10 Most Corrupt Tax Loopholes was pretending to be Irish. Chris Parker wrote, “Most individuals affiliate such exhaustive money-laundering with drug cartels. However it’s now customary observe at companies like Eli Lilly, Google, Microsoft, Pfizer, and Fb. The one distinction is that when drug sellers do it, the federal government reveals up with Kevlar and automated weapons as an alternative of a refund verify.” The WSJ studies that Fb and the Inside Income Service will sq. off in a U.S. Tax Courtroom case subsequent week (alt supply) that might price the social-media large greater than $9 billion and form the federal government’s capability to crack down on corporations’ efforts to shift earnings to low-tax international locations, capping off a nine-year dispute over how Fb structured its worldwide operations. The IRS argues that extra of the corporate’s earnings ought to have been taxed at greater charges within the U.S., quite than within the firm’s Irish subsidiary. Fb contends that it deserves a refund. “Fb Eire and Fb’s different overseas associates — not Fb U.S. — led the high-risk, and finally profitable, worldwide effort to promote Fb adverts,” the corporate wrote in its pretrial memo. “Fb Eire is entitled to earnings from the overseas enterprise it constructed.” Countering that argument, the federal government quoted Chief Working Officer Sheryl Sandberg as saying that Fb needed to name Eire its worldwide headquarters for “tax functions.” Whereas this tidbit did not discover its manner into the why-Eire assertion Sandberg supplied in Fb’s official Dublin HQ press launch, it does sq. with an announcement made by former Microsoft CEO Steve Ballmer, who in a 2005 second of candor defined, “Company tax is a part of the general benefit of doing enterprise in Eire. It might be disingenuous to say in any other case.”

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