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IT giant, Microsoft, avoids billions of dollars in taxes in several countries thanks to a complex structure

  • Post category:Economy News
  • Reading time:3 mins read

“In many cases, Microsoft has paid no tax in recent years by transferring profits to companies domiciled in Bermuda and other tax havens,” the Center for Research and Corporate Tax Responsibility said in a statement. (Cictar), a research firm based in Australia.

“Microsoft boasts of offering profit margins of more than 30% to its shareholders. However, in the United Kingdom, Australia and New Zealand, (the company) reports returns of only 3 to 4%, is surprised Jason Ward, analyst for the firm, quoted in the press release.

“It doesn’t seem credible that these thriving markets are posting such poor performance,” he adds, seeing it as “a huge red flag of tax avoidance,” which “deprives the public sector of much-needed revenue. need”, despite the “billions earned as a supplier to the governments” of these countries.

According to the study, Microsoft Global Finance, an Irish subsidiary that is tax resident in Bermuda, centralized more than $100 billion in investments and, despite operating profit of $2.4 billion, n paid no tax in 2020.

Another example cited by Cictar, Microsoft Singapore Holdings published in 2020 profits, coming from dividends, of 22.4 billion dollars, but announced a tax charge of only 15 dollars.

Microsoft has however concluded these last five years of public contracts whose amounts amount to at least 3.3 billion dollars in the United Kingdom, United States, Australia or Canada, according to the data of this study.