US tax authorities query Facebook on Ireland dealings
New York (AFP) – US tax authorities are asking Facebook to turn over documents for an investigation into the social networking giant’s dealings with its Irish subsidiary, court documents show.
In a petition filed in federal court in San Francisco, the Internal Revenue Service said it is “conducting an examination of the federal income tax liability” for Facebook in 2010.
The revelation is the latest highlighting tax questions on big tech companies on global operations.
European officials have looked at tax liabilities of companies including Google, Amazon and Apple. Some of the firms have taken advantage of tax breaks offered from Ireland, Belgium and Luxembourg.
The petition said the IRS is looking into “certain agreements between Facebook Inc. and Facebook Ireland Holdings Limited purporting to transfer rights associated with Facebook’s worldwide business to Facebook Ireland.”
The IRS said Facebook has failed to turn over documents sought in the investigation and did not appear in response to a summons for the information.
Facebook did not immediately respond to an AFP query on the matter.
The IRS is seeking a court order requiring Facebook to turn over the requested documents and to appear before IRS agents looking into the case.