Facebook to Back Off "Double Irish" Tax Strategy

Like many tech giants before it, Facebook (NASDAQ: FB) adopted the controversial (and popular) "double Irish" tax strategy back in 2012. The method is a common way to minimize tax liability, particularly for multinational companies that sell digital products and services, including advertisements. European tax structures have been under scrutiny for a couple years now, with regulators looking at ways to close various loopholes that companies are exploiting by booking revenue through subsidiaries based in countries like Ireland.

Facebook has now announced that it will be shifting to a new "local selling structure," where advertising revenue will be recognized by the local subsidiary in the respective country instead of recognizing all advertising revenue through its international headquarters in Dublin, Ireland.

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Source: Fool.com