How Microsoft "saves" money from the tax burden: new facts and research
This year, Microsoft "saved" $ 776 million from the tax burden. In this case, it is impossible to unequivocally say that the corporation violated the law. Rather, she changed it by lobbying for certain tax law decisions. This happened back in 2010, in Washington. For 6 years, the corporation has saved large sums of money from taxes, writes Jeff Reifman, a media entrepreneur, creator of the NewsCloud platform, a former Microsoft project manager.
It all started with the fact that the former Microsoft top manager Ross Hunter (in 2010 he was already a congressman) changed the tax on the sale of licenses in the world market. He convinced colleagues from Washington to lower this rate to the level of tax on the sale of licenses in the public sector. Colleagues believed his promises: by 2013, this measure was supposed to bring the state $ 20.4 million. But, as it turned out, it was just lobbying for Microsoft’s interests: the promises were not fulfilled.
As it turned out, this is not the first such case in the practice of Microsoft. In 1997, in Nevada, the corporation succeeded in reducing the tax rate by two thirds. However, last year the authorities in Nevada raised the rate again.
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In total, the corporation has saved $ 3.39 billion (including interest) from taxes. But if we assume that there was no rate cut in Nevada, this figure rises to $ 8.6 billion.
The company's profit amounted to $ 0.62 per share, with expectations of $ 0.64. After the announcement of the results, the company's shares fell by more than 5%, wrote Business Insider.
A negative factor for the company's profits was a one-time adjustment of the tax rate, which was 24% instead of the usual 20-21%. As Microsoft financial director Amy Hood explained, if it were not for this, profits would have surpassed market forecasts.
Fifty largest American companies are sheltering $ 1.4 trillion from taxes on foreign offshore accounts. These findings came from the international non-profit charitable organization Oxfam (Oxfam) after conducting a study in connection with the publication of the “Panama Papers” , wrote TASS April 14 with reference to the study.
The leader of the “rating” published today, according to the authors of the document, is Apple , which has more than $ 181 billion in offshore companies. It is followed by the company General Electric - $ 119 billion. In third place - Microsoft Corporation - $ 108.3 billion.
Billions of dollars were spent "on the whole army" of lobbyists to increase credit support and financial guarantees from the state.
"For every $ 1 spent on lobbying, the 50 largest companies collectively received $ 130 in tax benefits and more than $ 4,000 in federal loans, loan guarantees and debt," the Oxfam report said.
In connection with the publication of the “Panama Papers”, the White House sent new rules for consideration by Congress, according to which companies would have to disclose additional information about their owners.
Companies will have to report their owners to the tax authorities. New measures also close the loophole according to which some companies with foreign participation can avoid reporting to the US tax authorities. In addition, they expand the powers of the Ministry of Justice, in particular, increase the number of cases in which the agency may request information if corruption is suspected, reports The Guardian.
It all started with the fact that the former Microsoft top manager Ross Hunter (in 2010 he was already a congressman) changed the tax on the sale of licenses in the world market. He convinced colleagues from Washington to lower this rate to the level of tax on the sale of licenses in the public sector. Colleagues believed his promises: by 2013, this measure was supposed to bring the state $ 20.4 million. But, as it turned out, it was just lobbying for Microsoft’s interests: the promises were not fulfilled.
As it turned out, this is not the first such case in the practice of Microsoft. In 1997, in Nevada, the corporation succeeded in reducing the tax rate by two thirds. However, last year the authorities in Nevada raised the rate again.
')
In total, the corporation has saved $ 3.39 billion (including interest) from taxes. But if we assume that there was no rate cut in Nevada, this figure rises to $ 8.6 billion.
The company's profit amounted to $ 0.62 per share, with expectations of $ 0.64. After the announcement of the results, the company's shares fell by more than 5%, wrote Business Insider.
A negative factor for the company's profits was a one-time adjustment of the tax rate, which was 24% instead of the usual 20-21%. As Microsoft financial director Amy Hood explained, if it were not for this, profits would have surpassed market forecasts.
Fifty largest American companies are sheltering $ 1.4 trillion from taxes on foreign offshore accounts. These findings came from the international non-profit charitable organization Oxfam (Oxfam) after conducting a study in connection with the publication of the “Panama Papers” , wrote TASS April 14 with reference to the study.
The leader of the “rating” published today, according to the authors of the document, is Apple , which has more than $ 181 billion in offshore companies. It is followed by the company General Electric - $ 119 billion. In third place - Microsoft Corporation - $ 108.3 billion.
Billions of dollars were spent "on the whole army" of lobbyists to increase credit support and financial guarantees from the state.
"For every $ 1 spent on lobbying, the 50 largest companies collectively received $ 130 in tax benefits and more than $ 4,000 in federal loans, loan guarantees and debt," the Oxfam report said.
In connection with the publication of the “Panama Papers”, the White House sent new rules for consideration by Congress, according to which companies would have to disclose additional information about their owners.
Companies will have to report their owners to the tax authorities. New measures also close the loophole according to which some companies with foreign participation can avoid reporting to the US tax authorities. In addition, they expand the powers of the Ministry of Justice, in particular, increase the number of cases in which the agency may request information if corruption is suspected, reports The Guardian.
Source: https://habr.com/ru/post/300636/
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