Barney's Blog

Blog archive

Redmond Tax Dodge

Months ago Google was roundly beaten for avoiding massive amounts of U.S. taxes. The trick, as I recall, is to claim your investment and expenses in America and book your profits overseas.

Under this approach Google pays something less than 2.5 percent, a fair bit less than the 35 percent U.S. corporate tax rate. It's all perfectly legal, and the short-term PR black eye is a small price to pay for savings billions every year. And some of that money goes back into the economy in the form of lobbyist fees and campaign donations!

Microsoft, as a shareholder-owned company, likewise does all it can to maximize profits. And this means the company parks 89 percent of its cash overseas.

However, unlike Google, Microsoft seems to pay its fair share, and last year paid a rate of 24 percent.

Tax thoughts welcome at dbarney@redmondmag.com.

 

Posted by Doug Barney on 09/24/2012 at 1:19 PM


Featured

  • Microsoft Shifting Away from Office 365 Brand Name in April

    Microsoft on Monday announced coming product naming changes, where "Office 365" is mostly getting replaced by the "Microsoft 365" brand.

  • Microsoft Grows Services Amid COVID-19

    Microsoft in a Saturday announcement recapped how its services have been affected by "shelter-in-place" governmental mandates in the last week, providing details on growth stats and prioritizations.

  • Microsoft Adds 6 More Months to Expiring Certification Programs

    Microsoft has announced an extension to the end date of three certification programs slated for retirement.

  • Microsoft's Surface Pro X: It's Like the Surface RT, But Better

    There's a lot about the Surface Pro X that's reminiscent of the ill-fated Surface RT. But despite the similarities, this might just be one of the rare cases where the sequel is better than the original.

comments powered by Disqus

Office 365 Watch

Sign up for our newsletter.

Terms and Privacy Policy consent

I agree to this site's Privacy Policy.