COMPLEX WEBFacebook Ireland Holdings in turn leased the rights to exploit the Facebook platform to its own subsidiary, Facebook Ireland Ltd, in return for a fee, accounts for Facebook Ireland Ltd, filed with the Irish company registry, show. The tax authority is examining whether Facebook understated its U.S. income by selling rights to an Irish subsidiary too cheaply. The lawsuit said that in 2010 Facebook Inc sold the rights to exploit the Facebook platform outside the United States and Canada to Facebook Ireland Holdings. The price used for the intangible property was determined by Facebook's tax adviser Ernst & Young (E&Y). Facebook Ireland Ltd. is Facebook's main international business unit, reaping sales of 4.8 billion euros ($5.3 billion) in 2014, the last year for which accounts are available.

Source: Standard Digital July 08, 2016 08:03 UTC