Europe is not alone in worrying about tax optimization practiced by enterprises, especially in the digital sector. The subject is also at the heart of work at the OECD (BEPS project) involving member states of the G20.
Earlier this year, the Obama administration has expressed its willingness to fight against this optimization, including by taxing the profits retained abroad. Microsoft could he make such office?
The profits that remain in Bermuda
The first global software publisher is in any case in dispute with the Internal Revenue Service. As noted by The Register, the IRS suspects of using Microsoft between 2004 and 2009 its subsidiaries in Bermuda and Puerto Rico in order to dodge taxes. Thus, billions of dollars of tax revenue would have escaped the US Treasury.
Microsoft refutes these allegations and the publisher and the Tax engaged since a procedural battle. The firm accuses including tax services to appeal to two law firms, delegating unduly a government function to private companies.
In that case, a first hearing is scheduled today 21 July before a court in Seattle. In terms of tax optimization, Microsoft is in no way an isolated case. In the technology sector alone, several giants are regularly singled out, especially because they reap profits through subsidiaries based in various tax havens.