Facebook and Taxes
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- Facebook avoided paying taxes by shifting the rights to its online platform and marketing intangibles to Ireland, a tax haven used by other Big Tech Companies.[1]
- Facebook faced scrutiny for underpaying taxes by $3 To $5 billion by undervaluing the worth of its intellectual property when transferring it to Ireland. The Institute on Taxation and Economic Police reported that Facebook “led the pack in exploiting the stock option loophole,” which allowed companies to deduct income based on the size of stock options they issued.
- From 2010 to 2019, Facebook paid $7.7 billion in income taxes on $75.5 billion in profits, which amounted to 10.2 percent of its profits.
- Facebook’s cash tax paid amounted to 10.2 percent of its profits, despite a federal headline tax rate of 35 percent in the United States.
