Facebook Inc. in 2010 the international business was transferred to Ireland, relating to the company may face additional United States tax. The social media giant on Thursday to the United States Securities and Exchange Commission (SEC) submit filings say, United States Internal Revenue Service Wednesday to between 3 billion and 5 billion dollars of overdue notice, plus interest and penalties. The amount is determined in accordance with internal revenue service audit of transfer pricing in Facebook.
Facebook said that its objections to the plans to the Federal Tax Court. Meanwhile, the IRS on Monday asked a federal district judge in California to force Facebook to produce and transfer to Ireland details relating to the asset value of the company's internal records.
These assets include United States and Canada outside of business.
"Facebook to comply with all applicable rules and regulations of the State in which the business," Facebook spokesman Bertie Thomson said in an e-mail. According to court documents, the IRS claimed that Facebook tax consultants Ernst through a separate assessment of the assets of the network platform, it transferred the business to Facebook Ireland Holdings Ltd. Shi, underestimated the value of the company's property.
According to the Government, Facebook employee told the internal revenue service, the property is "interdependence", "it is difficult to be isolated from one another." "I believe that Facebook may not be hiding something, but this is the price battle," Philadelphia tax attorney Stephen Hamilton said. "This is a practice when the company transferred its assets; they'll try low estimated values, but led to litigation, they usually end up compromising handling. 」
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