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[News] [Rival] Convicted Monopolist Microsoft Does Not Pay Tax

  • Subject: [News] [Rival] Convicted Monopolist Microsoft Does Not Pay Tax
  • From: Roy Schestowitz <newsgroups@xxxxxxxxxxxxxxx>
  • Date: Tue, 27 Oct 2009 09:18:44 +0000
  • Followup-to: comp.os.linux.advocacy
  • Newsgroups: comp.os.linux.advocacy
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Microsoft Freeloading In Washington State Courts

,----[ Quote ]
| For tax purposes, Microsoft reports that 
| it's earned its estimated $143 billion in 
| software licensing revenue in Nevada, where 
| there is no licensing tax, as we discussed 
| a few weeks ago. However, for legal 
| purposes, Microsoft relies on Washington 
| law and its underfunded courts to defend 
| its contracts as it did in Microsoft 
| Licensing GP vs. TSR Silicon. Application 
| of common legal doctrines such as nexus, 
| the step doctrine, and alter ego theory may 
| lead to findings that Microsoft owes the 
| state more than $1 billion in taxes, 
| interest, and penalties.


Microsoftâs Washington Tax Dodge Nears $1 Billion

,----[ Quote ]
| When you buy Microsoft software in a box 
| for personal use, you pay sales tax at the 
| point of delivery. But, when large 
| corporations purchase Microsoft software, 
| they are actually buying an electronic 
| download with the right to install that 
| software on a pre-determined number of 
| computers. The same goes for PC 
| manufacturers such as Dell that preinstall 
| Microsoft Windows 7 on its computers.
| [...]
| Arenât there laws against this?
| According to the Department of Revenue, to 
| avoid this tax, a company, like Microsoft, 
| would need to âeffectively transfer the 
| property to a related company (e.g., parent 
| and subsidiary corporations) located 
| outside Washingtonâ and recognize income 
| from the value of the transfer on its 
| Washington taxes. Itâs not clear that 
| Microsoft has done this â and there are 
| legal doctrines to charge a corporation if 
| it illegally evades its taxes:
| 1) The doctrine of Nexus represents ties or 
| links that a corporation has with a state. 
| Microsoft clearly has nexus in Washington 
| given its 40,224 employees, 9.8 million 
| square feet and 79 physical sites. Its 
| software also has nexus here as most is 
| built, tested, marketed, sold and 
| distributed from these facilities. 
| Microsoftâs historical use of the laws of 
| Washington to govern its licensing 
| contracts, its Washington-based lawyers and 
| its use of Washingtonâs courts to defend it 
| also contribute to the nexus of its 
| licensing business.
| 2) The Step Doctrine focuses on whether 
| steps of a transaction may stand alone or, 
| rather, whether the transaction should be 
| treated as a whole. It can be applied when 
| a corporation creates additional artificial 
| steps to appear as if it is not liable to 
| pay tax.
| [...]
| Do Microsoftâs Practices Constitute Illegal 
| Tax Evasion?
| Over the past few weeks, Iâve been asking 
| Washingtonâs Department of Revenue to 
| publish a finding on the legality of this 
| kind of tax practice. The department is 
| required to protect the privacy of 
| taxpayers and therefore cannot answer 
| specific questions about Microsoft only 
| questions about specific practices in the 
| abstract.



GE, Microsoft, Caterpillar fight Obama tax plan

,----[ Quote ]
| Microsoft Corp. (NASDAQ:MSFT) and Caterpillar Inc. (NYSE:CAT) have seen their
| bottom lines bulge over the years by farming out work for cheaper
| compensation to overseas countries. Now, with the U.S. economy reeling,
| President Obama's $190 billion tax proposal that ends incentives for American
| companies to create employment overseas while hoping to create more jobs in
| America won't necessarily have the intended impact, according to economists,
| businesses and some Obama insiders, Bloomberg reports.


Microsoft debt offering raises questions about plans for funds

,----[ Quote ]
| Microsoft, which has historically avoided borrowing money, this morning took
| the next step in its previously announced plan to raise funds through a
| public debt offering. The company made the move in a preliminary prospectus
| filed with the Securities and Exchange Commission.


How Obama's tax reforms could impact Microsoft's bottom line

,----[ Quote ]
| The debate hinges on policies that let companies with international
| operations avoid higher U.S. tax rates by reinvesting their foreign earnings
| overseas. The Obama administration last Monday detailed its plan to put a
| damper on that practice.
| "Currently, businesses that invest overseas can take immediate deductions on
| their U.S. tax returns for expenses supporting their overseas investments but
| nevertheless 'defer' paying U.S. taxes on the profits they make from those
| investments," the White House said in a May 4 briefing document. "As a
| result, U.S. taxpayer dollars are used to provide a significant tax advantage
| to companies who invest overseas relative to those who invest and create jobs
| at home."


Microsoft subsidiary has â477m pretax profit

,----[ Quote ]
| Microsoft Ireland Operations Ltd (MIOL) had turnover of â11.3 billion and
| paid corporation tax of â63.5 million according to accounts just lodged with
| the Companies Office and seen by The Irish Times.


Microsoft Ireland slashes US dividend as profits rise

,----[ Quote ]
| The dividend payment is roughly half the almost â3bn the Irish subsidiary
| remitted to the US headquarters in the financial year ended June 2006.


Microsoft in tax evasion soup

,----[ Quote ]
| Software major Microsoft Corpâs Indian subsidiary has been issued a
| show-cause notice for non-payment of service tax worth Rs 127 crore. The tax
| has been claimed on services offered to Microsoft Singapore by way of
| marketing support.    


Tax benefit helped Microsoft's 3Q earnings

,----[ Quote ]
| Turns out Microsoft and Uncle Sam have been going back through the company's
| books from 2000 to 2003. Not knowing how that would end up, Microsoft
| had "over accrued" its tax provision in past quarters, said Colleen Healy,
| general manager of investor relations. With the review settled, the company
| was able to reduce that provision.    


Microsoft Leads in Lobbying Largesse

,----[ Quote ]
| Microsoft is leading the tech industryâs charge up Capitol Hill, according to
| statistics released Monday.
| The world's largest software company spent $9 million on lobbyists to make
| its case in issues including taxes and trade, according to statistics
|                    ^^^^^^^^^^^^^^^^^^^^^^^^^
| compiled by the Center for Responsive Politics.  



Wis. Bill to Require Tax Loophole Data

,----[ Quote ]
| Wisconsin Bill Would Require More Reporting on Tax Loopholes
| [...]
| A message left with Microsoft was not immediately returned.


Microsoft says to borrow money for Yahoo deal

,----[ Quote ]
| Microsoft Corp said on Monday it may borrow money for the first time in its
| history to fund a portion of its $44.6 billion unsolicited offer for Yahoo
| Inc.  


Bill Gates: Rich Individuals Should Pay More Tax, Wealthy Corporations Less?

,----[ Quote ]
| As Taxing Tennessee points out, Bill Gates opposes eliminating the death tax
| but is quite happy to have local and state taxes eliminated for his
| company...  


,----[ Quote ]
| My background is finance and accounting....
| However, the Gates Buffet foundation grant is nothing more than a shell
| game in which control of assets for both Gates and Buffet remain the same.


Microsoft EULA lands it with $175m Indian tax headache

,----[ Quote ]
| Basing its ruling on the terms of Microsoft's own EULA (end-user license
| agreement), an Indian court has ordered the company to pay tax on royalty
| income generated in the country, Tax India Online (TIOL) reports.  
| [...]
| âUnacceptable tax avoidance typically involved the creation of complex
| artificial structures by which, as though by the wave of a magic wand, the
| tax payer conjures out of the air a loss, or a gain, or expenditure, or
| whatever it may be, which otherwise would never have existed. These
| structures are designed to achieve an adventitious tax benefit for the
| taxpayer, and in truth are no more than raids on the public funds at the
| expense of the general body of taxpayers, and as such are unacceptable.      


Cheers not jeers to Speaker Chopp on the Microsoft tax concession

,----[ Quote ]
| The Columbia Basin Herald this past week characterized House Speaker Frank
| Chopp as being a Forrest Gump, "stupid is as stupid does" villain for
| opposing big proposed tax breaks for Microsoft and Yahoo. The tax concession,
| those companies said, were necessary to keep them from fleeing Grant County,
| where they have huge server farms. The requests were similar to the $3.2
| billion in breaks Boeing Co. got from Governor Gary Locke and the Legislature
| when it threatened to take some of its assembly operations elsewhere.      

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