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Thursday, September 20, 2012

Senate Committee: Microsoft Avoided $6.5 Billion in Taxes Through "Aggressive International Tax Maneuvers"

Posted by on Thu, Sep 20, 2012 at 3:56 PM

Microsoft and its various executives really, really, REALLY care about public education...

A U.S. Senate committee memo said Microsoft Corp. (MSFT) used aggressive international tax maneuvers to avoid billions of dollars in taxes over the past three years.

The committee memo, released for a hearing today in Washington, said Microsoft used transactions with subsidiaries in Puerto Rico, Ireland, Singapore and Bermuda to save at least $6.5 billion in taxes.

... They just don't care to pay for it.

 

Comments (15) RSS

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1
The purpose of a company is to increase shareholder value. Everything else is window dressing.
Posted by Jude Fawley on September 20, 2012 at 4:08 PM · Report this
2
All I can feel is sorry for Microsoft after recently reading Apple's iPhone division alone is bigger than the entire company.

They went the way of IBM remarkably quickly, even with some solid products on the market.
Posted by Swearengen on September 20, 2012 at 4:10 PM · Report this
3
Speaking of Microsoft, taxes, and public education: didn't they (and also their competitors), at least in the past, reduce their tax liability by donating copies of Microsoft software to public schools and claiming the list price as a tax deduction?
Posted by Warren Terra on September 20, 2012 at 4:12 PM · Report this
4
We need a minimum alternative tax for corporations.
Posted by RVPMB on September 20, 2012 at 4:41 PM · Report this
Asparagus! 5
@2

What? I highly doubt what you say is true, and if it is, it probably reflects better on Microsoft than it does Apple, since the two companies have comparable revenue.

Also, in what way has Microsoft gone the way of IBM? By increasing the percentage of their business that is non-consumer, or with 'behind the scenes' products. Again, I'm not sure how that's bad for Microsoft.

I'm no Microsoft sycophant, but your whole comment just seems like you really have an axe to grind with them. Why?
Posted by Asparagus! on September 20, 2012 at 5:02 PM · Report this
Asparagus! 6
For the record:

Microsoft had 17 billion income on 74 billion revenue in 2011, Apple had 26 billion income on 108 billion revenue.
Posted by Asparagus! on September 20, 2012 at 5:05 PM · Report this
Posted by Swearengen on September 20, 2012 at 5:13 PM · Report this
8
And if you think that's bad, they fucked Washington State even worse than they've been fucking the feds:

Dummies Guide to Microsoft's Nevada Tax Dodge
http://microsofttaxdodge.com/

Posted by PCM on September 20, 2012 at 5:42 PM · Report this
9
@8 (PCM): On a per-capita, not an absolute, basis.
Posted by PCM on September 20, 2012 at 5:43 PM · Report this
MarkyMark 10
And then Microsoft whines piteously about how they don't understand it, but they just cannot seem to find enough well-educated workers to hire, and they are forced - FORCED! - to hire **cough cheapandeasilyintimidated cough** foreigners on H-1B visas. Poor, poor Microsoft. **cough pleaseCongressexpandtheH-1blimitspleasepleaseplease cough**

Microsoft Tops H-1B Visa Employer List
Posted by MarkyMark on September 20, 2012 at 6:16 PM · Report this
Karlheinz Arschbomber 11
They just love them their indentured servant H-1Bs at the mistake across the lake. Tremble before your bald god!
Posted by Karlheinz Arschbomber http://de.wikipedia.org/wiki/Arschbombe on September 20, 2012 at 7:07 PM · Report this
12
This infographic was a great find and I’m going to pass it around. There is one thing that I felt was missing from this analysis and it had to do with the website platform itself. Some health questions are more cumbersome than others to work with and this should be taken into consideration before getting too deep into testing and implementing a lot of tools or tests. Considering that website redesigns happen so often now, its a good thing to plan fro an implement a set of design musts for each website and a company grows. This will allow home and garden online marketers to be more effective in their testing. What are your thoughts?

Posted by wadehong http://www.ttiioo.com/ on September 20, 2012 at 8:47 PM · Report this
Will in Seattle 13
@8 is still correct. @11 for the insightful and worshipful win.

If you ever wonder why city revenues are down, ask yourself who is building all those buildings and whether or not "non-profit" "foundations" pay taxes.

the short answer is ... they don't. Which means YOU pay for THEIR services.
Posted by Will in Seattle http://www.facebook.com/WillSeattle on September 21, 2012 at 10:41 AM · Report this
blowdart 14
@10 Aww, look an H1B in your midst. I'm over here taking your jobs and hitting on your sister. But I'm Irish, so it's OK - I am pale and white, you'll never realise unless you hear me speak.

You realise an H1B has to be paid the same as an American worker? Sure, some of the body shop factories I've seen abuse the crap out of their H1Bs, but Microsoft? Well examined, watched, randomly checked Microsoft? Nope, sorry, hate to break it to you, but I'm neither cheap or easily intimidated (your sister on the other hand ...)

(Oh and note the same committee has also called out Google and Apple for the same practices)
Posted by blowdart on September 21, 2012 at 11:12 AM · Report this
15
@10, H1Bs tend to cost more than hiring a comparable american, especially if you consider the cost of moving them over, the legal representation, etc. Hiring H1Bs is truly done out of necessity, not out of some misplaced idea that it saves money.
Posted by Tawnos on September 21, 2012 at 12:23 PM · Report this

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