The United States Internal Revenue Service has recently made a claim that the corporate tech giant Facebook owes over $9 billion in unpaid taxes, according to Reuters. Facebook utilized the services of an Irish subsidiary that transitioned money internationally for the social media corporation and, according to reports, failed to report the royalty amount between 2010 and 2016.
“We stand behind the 2010 transaction that occurred when we had no mobile ad revenue, a nascent international business, and when our digital advertising products were unproven,” stated Facebook’s Berti Thomson. The argument by IRS is that Facebook undervalued its royalty amount between those specific dates, and by doing so, the company cut their domestic tax bill. CTO Mike Schroepfer, AR and VR chief Andrew Bosworth, and three other Facebook executives will be called to testify at the trial held in San Francisco, which is expected to last up to four weeks.