In theory, Microsoft’s
division is extremely profitable. The United States Senate survey showed that although only 177 employees, Microsoft’s Puerto Rico in 2011 profits of up to RMB 27 billion 500 million yuan.
Microsoft’s tax avoidance measure is perfectly legal. The Senate report said that Microsoft’s lawyers will be classified into the United States business profits Puerto Rico, 2011 tax evasion of about 10 billion 300 million yuan.
the United States congressional Republicans proposed tax reform proposal plan blocked this kind of vulnerability. The amount of Microsoft tax avoidance reveals the economic losses that companies that rely on similar strategies to avoid tax avoidance, tax avoidance in technology companies, and other companies with high value brands, patents and copyrights are common.
Senate’s investigation of Microsoft’s tax in 2012 described the legal tax avoidance strategy in detail. First, Microsoft sells some of its brands and copyrights to Puerto Rico. Puerto Rico’s tax laws are different from those of the United states.
years of Puerto Rico division by this means huge profits, these profits should have included in the Microsoft in Redmond headquarters: suitable for normal federal taxes.
experts said Microsoft’s strategy is representative. Many multinational companies have set up branches, they may be in Europe, Asia or the Caribbean in areas of lower taxes, and then to the division of the procurement of goods and services, paid to these segments of the purchase from the United States income tax.
, for example, in 2011, the Puerto Rico division paid $13 billion 100 million to Microsoft Corp headquarters for intellectual property rights. Microsoft then makes copies of software in the Puerto Rico division and sells it to other parts of the United states. In 2011, the income tax rate of 27 billion 500 million yuan in profits from Microsoft’s Puerto Rico division was only about $1%.
Senate permanent committee said in a report, "this structure can not meet any manufacturing or business needs, but the sales of goods in the United States to reduce the tax rate to the lowest level."
reported that Microsoft has taken a cooperative attitude in the investigation, the investigation did not find Microsoft improper or illegal behavior. William, vice president of Microsoft ·, Sample (William) to the Senate permanent committee, said, "at home and abroad to carry out business, we comply with the United States and local laws. This is not to say that the law cannot be amended."
Microsoft spokesman did not comment on whether the company was to support the Republican tax reform proposal or whether the company to change the financial arrangements for comment.
is estimated that corporate tax avoidance so that the U.S. government to reduce at least 688 billion 200 million yuan per year tax. Berkeley, an economist at the University of California, California, · (Alan Auerbach) predicts that as economic activity grows more and more dependent on brands and;