Tech & Telecom Law News

Facebook’s U.S. Tax Woes Could Lead to Global Audits

June 1, 2018, 11:00 AM

Facebook Inc. is likely to be audited by many countries if the social network loses its August 2019 trial in U.S. Tax Court over assets it transferred to Ireland.

An IRS win could lead to a pay-up of more than $5 billion and fuel other tax authorities to audit the Facebook’s intercompany pricing arrangements.

Facebook’s transfer pricing Tax Court case “sets precedent for other tax jurisdictions to come in and make a claim on Facebook as well,” Andrew Silverman, Bloomberg Intelligence tax policy analyst in New York, told Bloomberg Tax.

“I think it’ll be very expensive for Facebook to maintain...

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