5 ms·
By "earned overseas", it is meant: -- a U.S. customer bought software written in the U.S. in a U.S. store and used it in the U.S. -- "Microsoft US" paid "Micr
by jellicle 12y ago
By "earned overseas", it is meant:
-- a U.S. customer bought software written in the U.S. in a U.S. store and used it in the U.S.
-- "Microsoft US" paid "Microsoft Tax Dodge Inc." a fat fee for the use of the "Microsoft" name, which it had previously sold to "Microsoft Tax Dodge Inc."
-- as a result of these two transactions, no profit was earned in the U.S. but a large profit was "earned overseas"
-- curiously, the particular place where the profit was "earned overseas" does not tax foreign income, meaning no tax will ever be paid on this profit "earned overseas"
This is a definition of "earned overseas" that only a tax accountant would agree with.
- seanmcdirmid 12y agoThat is not true at all. Microsoft actually sells things in other countries...imagine that...
- jellicle 12y agoIf you're new to this discussion of how multi-national corporations avoid taxation, you probably should avoid posting on the subject until you're up to speed. http://en.wikipedia.org/wiki/Double_Irish_arrangement http://en.wikipedia.org/wiki/Double_Irish_arrangement Microsoft is - after finagling - showing billions of dollars in annual profits in a Bermuda subsidiary consisting of some paperwork in a lawyer's office. (And they are far from the only offender.) No, this isn't because Microsoft is selling billions of dollars worth of MSOffice in Bermuda. http://www.businessweek.com/articles/2014-03-20/companies-offshore-profits-keep-piling-up http://www.businessweek.com/articles/2014-03-20/companies-of...
- seanmcdirmid 12y agoNone of those links accuse Microsoft of that. Edit: if you want to point out something that does, feel free, but don't sling mud without.
- jellicle 12y agoYour reading comprehension is really embarrassingly limited, since both links are all about Microsoft and other companies doing that. Or I suppose you are just lying in order to troll. Not sure what the point of continuing here is; you are not entitled to your own facts. Microsoft is so notorious for their abuse that they're attracting congressional reports on the issue: http://www.businessinsider.com/apple-microsoft-avoids-taxes-loopholes-irs-2013-1 http://www.businessinsider.com/apple-microsoft-avoids-taxes-...