Multiple jurisdictions
The Revenue Commissioners said multinational business by its nature involved multiple jurisdictions. âRevenue administer corporation tax on a self-assessment basis, monitored by risk-focused compliance interventions,â the tax authority said.
âIt is a matter for each company to take decisions and make determinations in respect of its corporation tax obligations having regard to all the facts and circumstances, the relevant governing legislation and the guidance issued.â
Behind the scenes, there is considerable alarm at the Department of Finance at the move by Facebook, with discussions understood to be ongoing between Merrion Street and Revenue.
Sources pointed to the possible loss of income tax from workers who are not resident here, and there is worry that the Facebook move would set a precedent for other companies. One source described the move as âhugely worryingâ and said that if it turned into a trend, it would present âenormous challenges to the revenue baseâ.