Facebook has reportedly swerved a huge corporation tax bill by paying its Ireland-based parent company - Facebook Holdings Limited - €1.75bn in “admin costs” for its intellectual property.This would be a good time to quote U.S. president Rutherford B. Hayes on the matter:
According to the Financial Times (£), Facebook recently reported a pre-tax loss of €626,000 after it paid out those expenses.
In 2012, Facebook Ireland Ltd had 382 staff on its books in Dublin, and reported a gross profit of €1.75bn and sales of €1.79bn for the year...
The practice of avoiding tax in that way – known as Double Irish – is used by other internet giants such as Google, which shifts some of its money through a Bermuda shell company...
Facebook defended its actions by saying it "complies with all relevant corporate regulations including those related to filing company reports and taxation.
The real difficulty is with the vast wealth and power in the hands of the few and the unscrupulous who represent or control capital. Hundreds of laws of Congress and the state legislatures are in the interest of these men and against the interests of workingmen. These need to be exposed and repealed. All laws on corporations, on taxation, on trusts, wills, descent, and the like, need examination and extensive change. This is a government of the people, by the people, and for the people no longer. It is a government of corporations, by corporations, and for corporations.Of course we should also point out that the "presidential election of 1876 had been thoroughly corrupted by fraudulent vote counts in favor of each candidate (the Republican Rutherford B. Hayes, the Democrat Samuel J. Tilden, both of them held captive by the banks)."
Diary (11 March 1888]).