Bloomberg Law
Oct. 28, 2016, 2:06 PM UTC

EY Created Facebook’s Tax Plan. And Lo, It Was Good, Declared EY

Bloomberg Media

By David Kocieniewski, BloombergBusinessweek

Facebook is having an argument with the Internal Revenue Service, which the social media giant says could cost it as much as $5 billion. The dispute involves a tax strategy designed by EY, formerly Ernst & Young, that helped Facebook slash billions from its U.S. tax bill since 2010. Part of Facebook’s defense is that the plan was fully reviewed by its outside auditors. The accounting firm that signed off on EY’s tax plan? EY.

Over the past four years, Facebook paid EY almost $23 million for auditing, plus $21 million for tax planning and ...

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