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19/2/20: Facebook becomes another Ireland Inc’s reforms test case

Summary:
First the 'anti-American'  EU Commission's moved against a wonderful U.S. company washing tens of billions of tax free money through Ireland (see: https://www.reuters.com/article/us-eu-apple-stateaid/apple-says-14-billion-eu-tax-order-defies-reality-and-common-sense-idUSKBN1W1195) and now, the U.S. IRS ('anti-American' as they are) have moved against another wonderful U.S. company washing billions of tax free money through Ireland.The latest case is, of course, the anti-American IRS suing Facebook over its shenanigans in Ireland: https://www.reuters.com/article/us-facebook-tax/facebook-faces-tax-court-trial-over-ireland-offshore-deal-idUSKBN20C2CQ. Per report: "The IRS argues that Facebook understated the value of the intellectual property it sold to an Irish subsidiary in 2010 while

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First the 'anti-American'  EU Commission's moved against a wonderful U.S. company washing tens of billions of tax free money through Ireland (see: https://www.reuters.com/article/us-eu-apple-stateaid/apple-says-14-billion-eu-tax-order-defies-reality-and-common-sense-idUSKBN1W1195) and now, the U.S. IRS ('anti-American' as they are) have moved against another wonderful U.S. company washing billions of tax free money through Ireland.

The latest case is, of course, the anti-American IRS suing Facebook over its shenanigans in Ireland: https://www.reuters.com/article/us-facebook-tax/facebook-faces-tax-court-trial-over-ireland-offshore-deal-idUSKBN20C2CQ. Per report: "The IRS argues that Facebook understated the value of the intellectual property it sold to an Irish subsidiary in 2010 while building out global operations, a move common among U.S. multinationals."

It is worth noting that this intellectual property redomiciling to Ireland has dramatically increased since the irish Government 'tax reforms' of 2014. Whilst the CSO does not fully account for such transfers in its GNI* measure, the gap between Irish GDP and GNI* has accelerated to historically new levels in recent years, as highlighted here: https://trueeconomics.blogspot.com/2020/02/9220-ireland-more-of-reformed-tax-haven.html.

The case is yet another hammer blow to Ireland's reputation in international economic policy circles and a testament that Ireland's famed compliance with the OECD BEPS rules is a fig leaf of decorum, to be stripped publicly by the EU and the U.S. (and probably other G20) authorities in years to come.

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