The U.S. Internal Revenue Service (IRS) said Facebook Inc (FB.O) may have understated the value of intellectual property it transferred to Ireland by "billions of dollars", unfairly cutting its tax bill in the process, according to court papers. The U.S. Justice Department filed a lawsuit on Wednesday in federal court in San Francisco seeking to enforce IRS summonses served on Facebook and to force the world's largest social network to produce various documents as part of the probe. The tax authority is examining whether Facebook understated its U.S. income by selling rights to an Irish subsidiary too cheaply. Doing so could boost taxable profits in Ireland, which has a corporate tax rate of 12.5 percent, and reduce taxable income in the United States which has a rate of at least 35 percent. Facebook denied any wrongdoing. "Facebook complies with all applicable rules and regulations in the countries where we operate," Anteneh Daniel, a spokesperson for the company, said in a … [Read more...] about U.S. tax agency investigates Facebook’s Ireland asset transfer
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A model of Y-20 military transporter aircraft is displayed at Aviation Industry Corporation of China (AVIC)'s booth at the Aviation Expo China 2015, in Beijing, China, September 16, 2015. Photo: Reuters/Jason Lee/File Photo Some Chinese state-owned entities, backed by the key government agency that oversees major state industrial companies, have adopted a controversial defense when they face U.S. lawsuits: You can't touch us because we enjoy sovereign immunity. Aviation Industry Corporation of China (AVIC), China's biggest state-owned aerospace and defense company, has used the strategy twice, while state-owned China National Building Materials Group Co (CNBM), a state-owned building products company, successfully used it in a case involving allegations that Chinese-made drywall led to health problems for U.S. homeowners. China's Foreign Ministry in October complained to the U.S. government over attempts by plaintiff lawyers to serve the drywall lawsuit on the State-owned Assets … [Read more...] about Chinese state entities argue they have ‘sovereign immunity’ in U.S. courts
Six soccer officials, including some high-ranking members of world governing-body FIFA, were arrested by Swiss police on Wednesday and detained pending extradition to the United States. The arrests were made shortly after a dawn at a Zurich hotel where FIFA officials are staying ahead of this week's FIFA presidential election. The Swiss Federal Office of Justice (FOJ) released a statement saying the six officials, who were not formally named, were suspected by U.S. investigators of having received or paid bribes totaling millions of dollars. The FOJ also confirmed that FIFA president Sepp Blatter was not among those arrested. "The US Attorney's Office for the Eastern District of New York is investigating these individuals on suspicion of the acceptance of bribes and kickbacks between the early 1990s and the present day," the statement said. "The bribery suspects -- representatives of sports media and sports promotion firms -- are alleged to have been involved in schemes to … [Read more...] about Arrested FIFA officials face extradition to U.S.
Vietnamese and U.S. finance ministers hold talks Anh Thu By Anh Thu - The Saigon Times Daily HCMC – Minister of Finance Dinh Tien Dung had talks with U.S. Treasury Secretary Jacob J. Lew during his ongoing visit to the U.S. made at the invitation of the Treasury Secretary, and discussed a vast array of issues. Dung briefed his U.S. counterpart on the Vietnamese Government’s solutions to macroeconomic stabilization, price stabilization and especially economic restructuring, the Finance Ministry said in a press release on Tuesday. The two ministers highly appreciated cooperation results between the two sides in the past time and agreed on promoting further cooperation, especially in areas of customs, taxation and budget management. Besides, the two ministers also mentioned progress in negotiations over the Trans-Pacific Partnership (TPP), which will bring about benefits for all sides. Joining Minister Dung during the visit, which will wrap up on March 15, are leaders … [Read more...] about Vietnamese and U.S. finance ministers hold talks
U.S. Federal Reserve vice chair Janet Yellen on Thursday signaled that the central bank's monetary easing policies will continue until the U.S. economy substantially improves. Against the background of high unemployment rate at 7.7 percent, the Fed's mandate calls for a "highly accommodative monetary policy," Yellen said here at the Society of American Business Editors and Writers 50th Anniversary Conference. Starting in late 2008 and continuing through today, the Federal Reserve has purchased assets including agency-guaranteed mortgage- backed securities and longer-term Treasury securities that have added about 2.5 trillion U.S. dollars to its balance sheet, she noted. "At some point it will be appropriate to cease adding to accommodation and, later, to begin the process of withdrawing the significant accommodation required by the extraordinary conditions caused by the financial crisis," she said. Since the onset of the financial crisis, the Fed has kept its short-term interest … [Read more...] about U.S. Fed hints monetary stimulus to continue