Lawsuit Between Facebook and the American Tax Authorities

A trial opened Tuesday before a judge in San Francisco between Facebook and the United States tax authorities , who claims the social network $ 9 billion in tax arrears.

The litigation concerns a transfer of intellectual property carried out in 2010 by Facebook to one of its subsidiaries in Ireland.

The tax authorities accuse the group of having declared, for the transferred technologies, a value less than reality, in order to reduce the amount of tax payable in the United States on this income.

Conversely, Facebook maintains that the amount paid to it by its Irish subsidiary in exchange for the technologies in question was actually greater than the real value of these assets, and that it was therefore too heavily taxed in the United States .

Several senior Facebook officials are to be heard during the trial. The judgment could mark a precedent for the attitude of American justice towards the practice, common among multinationals, of transferring profits to the countries where they are the least taxed.

 

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Lawsuit Between Facebook and the American Tax Authorities - /10

Summary

A trial opened Tuesday before a judge in San Francisco between Facebook and the United States tax authorities , who claims the social network $ 9 billion in tax arrears.

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