Tech

Facebook shuts down Irish office used for tax evasion

This is evident from documents seen by The Times. Facebook is one of the many tech companies with an office in Ireland, because there is predominantly less tax.

Facebook’s headquarters are in the United States. That is why a method was devised to pay a lower tax from Ireland. All intellectual property was placed in Ireland, after which the US office paid for its use.

As a result, Facebook’s profits in America fell sharply: a large part of the turnover was used to pay money to Ireland, while it actually remained in the hands of the tech giant.

In 2018, Facebook paid a tax of $ 101 million through this detour, while revenue in the same year was $ 15 billion. This is partly due to the lower rates applied by Ireland in specific situations.

US tax authorities

A Facebook spokesperson confirms that all intellectual property will be relocated to the US office, which appears to end the tax ploy.

A reason for the adjustment has not been given, but the US tax authorities recently took the tech giant to court for such constructions.

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