2023-10-12 10:00:00
Written by Samah Labib Thursday, October 12, 2023 01:00 PM The US Internal Revenue Service (IRS) reported Microsoft Corporation The company owes $28.9 billion in back taxes “plus penalties and interest” for the tax years 2004 to 2013, according to a Securities and Exchange Commission filing.
Microsoft’s vice president of global tax and customs, Daniel Goff, responded to the audit in a blog post, saying the company has changed its corporate structure and practices since the years covered by the audit. “The issues raised by the IRS are relevant to the past but not to our current practices,” Goff says. , according to theverge report.
The IRS’s proposed adjustments do not reflect the amounts the company paid under the Tax Cuts and Jobs Act, according to Goff, who claims that could reduce the final tax due by as much as $10 billion. Additionally, Microsoft claims the IRS does not agree to… The way Microsoft allocates profits internationally is through a transfer pricing arrangement called cost sharing.
Microsoft says it disagrees with the IRS’s “proposed amendments” and will “strongly oppose” them, and in the same blog, Microsoft says it doesn’t expect the dispute to be resolved within the next 12 months.
Separately, the company recently prevailed against the Federal Trade Commission (FTC), which failed to obtain a preliminary injunction against Microsoft’s plan to acquire Activision Blizzard for $68.7 billion, a deal expected to close on October 13.
1697106554
#taxes #owe #Microsoft #billion…and #company #responding