Market Overview

Facebook The Latest Big Tech Company With Tax Problems

Facebook The Latest Big Tech Company With Tax Problems
Related FB
Wedbush's 7 Reasons To Like Alphabet
Dozens Of Facebook Employees Combat Misinformation In 'War Room'
Oculus showing more NBA games in VR; WhatsApp bans in Brazil (Seeking Alpha)
Related GOOGL
Wedbush's 7 Reasons To Like Alphabet
As Pentagon Cloud Computing Bid Deadline Nears, Google Drops Out, IBM Protests
Armstrong Henry H Associates Inc Buys Bausch Health Inc, iShares Core High Dividend, iShares ... (GuruFocus)

Facebook Inc (NASDAQ: FB) is the latest big-name tech company to answer questions regarding its tax bill. This week, the U.S. Justice Department filed a petition to force Facebook to comply with an investigation into property the company transferred to an Ireland subsidiary for tax purposes back in 2010.

The legal filing states that the IRS believes Facebook accounting firm Ernst & Young may have “understated” the value of the property by “billions of dollars,” according to CNN Money.

Facebook isn’t the only big U.S. tech company whose tax practices have been questioned by regulators.

Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) was investigated back in 2011 regarding tax issues in Spain. Earlier this year, Italian officials claimed that Google owed them €300 million in back taxes. The French government also says that it will not negotiate with Google and expects the full amount of back taxes it feels the company owes.

Related Link: How Predictions Of An Impending Market Crash Might Actually Be Evidence It Isn't Coming Yet

In addition to Google’s European tax woes, Microsoft Corporation (NASDAQ: MSFT) found itself in a similar boat as Facebook last November when a judge ordered the company to comply with IRS requests for documents related to large-scale tax audit.

The Justice Department is racing the clock if it wants to file any charges against Facebook related to the matter under investigation. The statute of limitations on the property transfers reportedly expires on July 31.

Disclosure: The author holds no position in the stocks mentioned.

Posted-In: cnn money Ernst & Young Facebook Ireland irelandNews Legal Tech Media Best of Benzinga


Related Articles (GOOG + FB)

View Comments and Join the Discussion!

Lafayette Coney Island: Life Stories Of Detroit, Hot Dogs And Family

Is Lululemon On Track To Hit Margin Guidance?