Cictar investigation: ‘Microsoft evades tax in several countries’ – News

“In many cases, Microsoft has failed to pay taxes in recent years by transferring profits to companies based in Bermuda and other tax havens for tax purposes,” concludes the Center for Corporate Tax Research and Accountability (Cictar ), an Australian-based research firm. .

Microsoft is proud to offer its shareholders profit margins of more than 30%. But in the UK, Australia and New Zealand, it yields returns of just 3-4%,” said Cictar analyst Jason Ward.

“Huge Red Flag”

“It doesn’t seem credible that these booming markets are underperforming,” he added. Ward calls it “a huge red flag” for tax evasion: “It robs the public sector of much-needed revenue, while earning billions as a supplier to the governments of these countries.”

Microsoft Global Finance, an Irish subsidiary that has tax resident status in Bermuda, centralized more than $100 billion in investments, according to the study. Yet in 2020, despite an operating profit of $2.4 billion, no taxes were paid.

In another example cited by Cictar, Microsoft Singapore Holdings reported a dividend profit of $22.4 billion in 2020, but a tax burden of just $15. Yet Microsoft has signed government contracts worth at least $3.3 billion in the UK, US, Australia or Canada over the past five years, according to data from the study.

“In many cases, Microsoft has failed to pay taxes in recent years by transferring profits to companies based in Bermuda and other tax havens for tax purposes,” concludes the Center for Corporate Tax Research and Accountability (Cictar ), an Australian-based research firm. Microsoft is proud to offer its shareholders profit margins of more than 30%. But in the UK, Australia and New Zealand the returns are only 3-4%,” said Cictar analyst Jason Ward. “It doesn’t seem credible that these booming markets are underperforming,” he added. Ward calls it “a huge red flag” for tax evasion: “It deprives the public sector of much-needed revenue, while making billions as a supplier to the governments of these countries.” According to the study, Microsoft Global Finance, an Irish subsidiary whose tax residency status has centralized more than $100 billion in investments in Bermuda. Yet despite an operating profit of $2.4 billion, no taxes were paid in 2020. In another example cited by Cictar, Microsoft Singapore Holdings reported a dividend profit of $22.4 billion. in 2020, but a tax burden of only $15. Yet Microsoft has signed government contracts worth at least $3.3 billion in the UK, US, Australia or Canada over the past five years, according to data from the study.