In many cases, Microsoft has paid zero tax in recent years by moving profits to companies tax-domiciled in Bermuda and other well-known tax havens while it continues to receive taxpayer money
Tech giant Microsoft has avoided billions in taxes in Britain, Australia and New Zealand, all countries where it has lucrative public sector contracts, because of its complex corporate structure, a study published Thursday claimed. Photo: Shutterstock
London, United Kingdom: Tech giant Microsoft has avoided billions in taxes in Britain, Australia and New Zealand, all countries where it has lucrative public sector contracts, because of its complex corporate structure, a study published Thursday claimed.
The company, which insists it respects local laws and regulations everywhere it operates, was starving the public purse of much-needed revenue while receiving taxpayer cash, the Center for Corporate Tax Accountability and Research (Cictar) said.
"In many cases, Microsoft has paid zero tax in recent years by moving profits to companies tax-domiciled in Bermuda and other well-known tax havens," Cictar said in a statement.
According to the study, Microsoft Global Finance—an Irish subsidiary that has tax resident status in Bermuda—consolidated more than $100 billion in investments and, despite an operating profit of $2.4 billion, paid no tax in 2020.