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Image Credit - Silicon Republic[/caption]
In answer to the IRS brought allegations Microsoft shared that it plans to ‘vigorously contest’ this demand. The fee presented by the IRS is for taxes allegedly owed between 2004 and 2013. Microsoft also has said that they are facing a demand of $28.9 bn along with penalties and interest presented by the US Internal Revenue Service (IRS).
According to Microsoft, it recently received a notice of Proposal Adjustment from the IRS about tax years. The Microsoft corporate VP for worldwide tax and customs, Daniel Goff said, “This marks the end of the audit covering 2004 to 2013, and the beginning of a new process to resolve these decades-old issues.”
According to a filing with the US Securities and Exchange Commission, Microsoft plans to content this demand with their full strength; they are also willing to enter judicial proceedings if required. The massive tech giant disagrees with these proposed adjustments and is pursuing an appeal with the IRS. This appeal might take years to resolve, but they are willing to invest their time into this matter.
Microsoft also pointed out that figures mentioned by the IRS don’t take into account the taxes paid by the company, under the US Tax Cuts and Jobs Act. Microsoft claims that if this is taken into account then the final number of the tax owed by the company can decrease up to $10 bn. According to Microsoft, this disagreement is about the way the company allocated profits during this time among various other countries and assorted jurisdictions.
The company also has mentioned that after 2013 they changed their corporate structure. So, these issues raised by IRS “are relevant to the past but not to our current practices”. Goff said, “We will continue to work with the IRS and hope to reach a mutual resolution to this issue over the coming years.” He also added, “We will also continue to share updates on significant developments through our public quarterly and annual reports and financial statements, as we have through this entire process.”
Not just this one, Microsoft is facing several problems due to some of their practices. UK comms regulator Ofcom has called for further investigation into the UK’s cloud market. They are concerned that both Microsoft and AWS engage in anticompetitive practices. Since last week, the investigation has been escalated. Apart from that, the tech giant is also dealing with several other problems. Its planned acquisition of Activision is at risk, while the company is trying hard, and amendments were made. Hence, amendments to this deal appear to be appeasing regulators.
In June, Microsoft agreed to pay $ 20 m to the Federal Trade Commission. The company was found to have illegally collected data on children, who had or had started their Xbox accounts. But, the firm is soon going to have its victory, and the plans to buy Activision Blizzard will be materialized for $68.7 bn. This will make Call for Duty available once again, the deal is soon to be finalized.
Image Credit - Silicon Republic[/caption]In answer to the IRS brought allegations Microsoft shared that it plans to ‘vigorously contest’ this demand. The fee presented by the IRS is for taxes allegedly owed between 2004 and 2013. Microsoft also has said that they are facing a demand of $28.9 bn along with penalties and interest presented by the US Internal Revenue Service (IRS).
According to Microsoft, it recently received a notice of Proposal Adjustment from the IRS about tax years. The Microsoft corporate VP for worldwide tax and customs, Daniel Goff said, “This marks the end of the audit covering 2004 to 2013, and the beginning of a new process to resolve these decades-old issues.”
According to a filing with the US Securities and Exchange Commission, Microsoft plans to content this demand with their full strength; they are also willing to enter judicial proceedings if required. The massive tech giant disagrees with these proposed adjustments and is pursuing an appeal with the IRS. This appeal might take years to resolve, but they are willing to invest their time into this matter.
Microsoft also pointed out that figures mentioned by the IRS don’t take into account the taxes paid by the company, under the US Tax Cuts and Jobs Act. Microsoft claims that if this is taken into account then the final number of the tax owed by the company can decrease up to $10 bn. According to Microsoft, this disagreement is about the way the company allocated profits during this time among various other countries and assorted jurisdictions.
The company also has mentioned that after 2013 they changed their corporate structure. So, these issues raised by IRS “are relevant to the past but not to our current practices”. Goff said, “We will continue to work with the IRS and hope to reach a mutual resolution to this issue over the coming years.” He also added, “We will also continue to share updates on significant developments through our public quarterly and annual reports and financial statements, as we have through this entire process.”
Not just this one, Microsoft is facing several problems due to some of their practices. UK comms regulator Ofcom has called for further investigation into the UK’s cloud market. They are concerned that both Microsoft and AWS engage in anticompetitive practices. Since last week, the investigation has been escalated. Apart from that, the tech giant is also dealing with several other problems. Its planned acquisition of Activision is at risk, while the company is trying hard, and amendments were made. Hence, amendments to this deal appear to be appeasing regulators.
In June, Microsoft agreed to pay $ 20 m to the Federal Trade Commission. The company was found to have illegally collected data on children, who had or had started their Xbox accounts. But, the firm is soon going to have its victory, and the plans to buy Activision Blizzard will be materialized for $68.7 bn. This will make Call for Duty available once again, the deal is soon to be finalized.
