FACEBOOK ADMITS IT COULD OWE UNCLE SAM $5BILLION IF IRS INVESTIGATION PROVES COMPANY HAS BEEN AVOIDING TAXES

FACEBOOK ADMITS IT COULD OWE UNCLE SAM $5BILLION IF IRS INVESTIGATION PROVES COMPANY HAS BEEN AVOIDING TAXES

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FACEBOOK-ADMITS

According to the Daily mail newspaper, Facebook could owe billions to Uncle Sam after an IRS investigation is over; the social media company is warning shareholders.

In 2010, Facebook shifted the rights to its assets, excluding the US and Canada, to Ireland, a low-tax haven for corporations.

On Thursday, the company said it could owe an IRS penalty of $3 billion to $5 billion, plus interest, according to a filing with the Securities and Exchange Commission, if it turns out Facebook was undervaluing its assets.

Assets included hard quantifying assets such as ‘user base, online platform and marketing intangibles.’

The penalty could have an ‘material adverse impact’ on its profits, said the company who last week surpassed Warren Buffet’s Berkshire Hathaway in market value.

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