111–120 of 333 posts
These tax dodges are corporate shenanigans, and to me it’s no different than tax evasion.
If the IRS wins their suit then it will be shown to be no different than tax evasion in this case though :-)
To those mentioning that Facebook's revenue is $70b: their net income is only around ~$18b. This would be half of Facebook's net income for an entire year, which is substantial. It's a big deal to them.
Not exactly, it's not a good measure simply to take the profit of 1 year as a guide. They will not be expected to pay this fine each year. Turning over a profit of 9Bn, its still after this fine.. Thats still huge. Given their assets, cash on hand etc. I don't think they will lose much sleep. Anyway they will get away with it. They can afford to.
They will be "expected" to discontinue the behavior the IRS is suing them for. If they do it again, the IRS presumably has cause to sue again.
Earlier quoted context omitted.
But if you as a citizen owe 1000USD, you'll be pursued more. Its completely messed up, but that's the current rules of the system. Without going into politics, they play by the stretched rules.
>But if you as a citizen owe 1000USD, you'll be pursued more. Is the IRS really auditing people over $1000 in taxes (under $4000 of revenue/income)?
Once it gets into 7-8 figures, you can VERY easily pay proportionately less than the poor suckers caught in the 10-500K net.
Doesn't almost every multinational use this arrangement, commonly known as the Double Irish? Why is Facebook getting called out specifically? Surprised the article doesn't mention this. https://en.wikipedia.org/wiki/Double_Irish_arrangement#Multi...
Apple dealt with the EU over this in 2016 https://en.wikipedia.org/wiki/EU_illegal_State_aid_case_agai...
To those mentioning that Facebook's revenue is $70b: their net income is only around ~$18b. This would be half of Facebook's net income for an entire year, which is substantial. It's a big deal to them.
That's what the point of punishing companies for hiding money in tax heavens is. If they got fined $10M it wouldn't be much newsworthy
These tax dodges are corporate shenanigans, and to me it’s no different than tax evasion.
Tax avoidance is legal, tax evasion is illegal. There’s a big difference. If the IRS wins their suit then it will be shown to be no different than tax evasion in this case though :-)