Microsoft owes $29 billion in back taxes plus penalties and interest to IRS::The IRS sent a surprise bill to Microsoft, hitting the company with a $28.9 billion bill for back taxes and penalties spanning a decade, starting in 2003.

  • MooseBoys@lemmy.world
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    1 year ago

    The issues that generated this debt pertains to intercompany transfer pricing.

    Can someone explain what this means in english?

    • neptune@dmv.social
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      1 year ago

      A company as big as Microsoft is not just one company. Just like movie studioes will famously make their film “lose money” to avoid royalty payments, I would bet Microsoft is trying to avoid taxes by selling services, products or profits “at a loss” between different corporate LLCs all owned by Microsoft.

      Imagine if your time spent grocery shopping was an “import” corporation that overcharged your “works for a salary” corporation, all within your household.

      But I’m sure someone can read the SEC filing and understand for sure.