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Facebook to close Irish units at center of tax dispute

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Facebook to close Irish units at center of tax dispute
Facebook to close Irish units at center of tax dispute

Facebook confirmed Wednesday it was closing its Irish subsidiaries at the center of a dispute on profit shifting to avoid taxes in the United States.

The California tech giant acknowledged the winding down of Facebook Ireland Holdings Unlimited Company amid a dispute with US tax authorities, which claimed the company owed billions in taxes by improperly shifting profits offshore.

A Facebook spokesperson said the move was “part of a change that best aligns with our operating structure” and that the holdings of the three subsidiaries were “distributed to its US parent company.”

The closing was previously reported by the Times of London and other media.

Facebook has disputed the claims from US tax authorities seeking some $9 billion for allegedly undervaluing intellectual property assets used by the social network.

But it noted that these assets were repatriated in July in a move which “best aligns corporate structure with where we expect to have most of our activities and people.”

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