Sunday, September 23, 2012

Irish subsidiaries helped Microsoft reduce US tax bill

Puerto Rico is a US territory of  the United States whose US citizens are denied the right to vote for the President of the US or have representation in the US Congress, so these multinational corporations can have a tax shelter!
 
They lobby Washington to protect their tax privileges and to keep Puerto Rico in a status limbo for their benefit. This hurts not only Puerto Ricans, but US Jobs, the IRS and the global economy ! MJ
William Sample, vice president of worldwide tax at Microsoft, is sworn in at a US Senate subcommittee hearing in Washington. Photograph: Andrew Harrer/Bloomberg
According to the memo, Microsoft began to create its international network of foreign entities in the 1990s, beginning with Ireland, but also creating centres in Singapore and Puerto Rico.   

The central role played by Ireland in an “aggressive” global structure created by Microsoft to save itself billions of dollars annually in US taxes is outlined in a memorandum prepared for a Senate committee in Washington. The Senate Permanent Subcommittee on Investigations used the multinational technology company as a case study on how such companies are using global structures to avoid US taxes.