The Internal Reveue Service, the US government agency responsible for tax inspection and collection, has accused Facebook of tax evasion and has filed a lawsuit against the social network. At issue is an alleged $ 9 billion debt related to channeling profits into the subsidiary of the company led by Mark Zuckerberg in Ireland.
According to the complaint filed in the San Francisco court, Facebook took advantage of flexible Irish legislation to pay less tax, Reuters advances. The IRS alleges that the company has not correctly declared the value of the intellectual property it has sold since 2010.
In response to the IRS, Facebook says the accusations are unfounded. According to spokeswoman Bertie Thomson, the transactions in question took place at a time when the company was still in an international expansion phase.
Ireland is seen by many technological giants as a tax haven, however, many have come under scrutiny from government entities due to their less legal practices.
In early 2020, Alphabet announced that it would no longer take advantage of tax loopholes and start paying its taxes in the U.S. At issue was the use of the Double Irish, Dutch Sandwich technique, which made it possible to delay the payment of taxes related to the company's earnings internationally in the United States and to pay a lower tax rate abroad.
The decision of the Google me company came after Apple was in the sights of the European Commission. In September 2019, Apple was heard by Margrethe Vestager, the current executive vice president for the Digital Age, about the "record fine" of 13 billion euros due to back taxes. Apple was fined in 2016 for negotiating fees with Ireland, allowing the apple company to pay less than others in the industry.
The case began in 2014, when Margrethe Vestager claimed that the tax benefits Apple gave to the Irish government were in clear violation of European Union laws. The Commission noted that the special relationship allowed the smartphone manufacturer to pay only 0.005% of taxes on profits for 2014. According to the European investigation, two tax regulations issued by Dublin offered Apple special conditions that allowed it to enjoy a substantially higher tax rate. lower than that provided for in European legislation.