Senate report: Microsoft used loopholes to avoid billions in taxes
1–10 of 40 posts
Re: Senate report: Microsoft used loopholes to avoid billions in taxes
#2How complicated can it really be? If you're making the profit in the country, then you should pay the taxes on that profit there, not send it to another branch to avoid paying the taxes. If there isn't a law against doing that, then there ought to be one.
Re: Senate report: Microsoft used loopholes to avoid billions in taxes
#3How complicated can it really be? If you're making the profit in the country, then you should pay the taxes on that profit there, not send it to another branch to avoid paying the taxes. If there isn't a law against doing that, then there ought to be one.
Part of the issue, I think, is people finding new and creative ways of "send[ing] it to another branch" and we're playing whack-a-mole because we want to ban the behavior rather than the intent.
Re: Senate report: Microsoft used loopholes to avoid billions in taxes
#4How complicated can it really be? If you're making the profit in the country, then you should pay the taxes on that profit there, not send it to another branch to avoid paying the taxes. If there isn't a law against doing that, then there ought to be one.
The problem is there is no internal free market. So, as soon as you move sub components around it's impossible to track what the actual profits where in each company. Let's say the US Fab cost 1 billion and you sold a chip in China for 50$ and 60$ in the US. What's there share of R&D costs?
Re: Senate report: Microsoft used loopholes to avoid billions in taxes
#5Firstly there are some simple issues that most international companies are very tax "efficient" - paying their alloyed fair share would drive most of the Fortune 500 into the red this year
I am not saying that's a bad thing but it is a hard thing
Secondly allocation of resources is soluble. - one example would be an international agreement to pool all taxes and share out to countries in proportion to employees per country, but in the end companies pay how much we are willing to let them get away with.
Re: Senate report: Microsoft used loopholes to avoid billions in taxes
#6How complicated can it really be? If you're making the profit in the country, then you should pay the taxes on that profit there, not send it to another branch to avoid paying the taxes. If there isn't a law against doing that, then there ought to be one.
Part of the issue, I think, is people finding new and creative ways of "send[ing] it to another branch" and we're playing whack-a-mole because we want to ban the behavior rather than the intent.
"ban the behavior rather than the intent"
I think this sums it up quite nicely. The intent, which is encouraged by all branches and is culturally engrained (I will retrieve citations if requested), is "reduce your taxes as low as possible".
With the right advisors, corporations can do this very effectively. This should not be a surprise to anyone. They will pay less, much less. After all, that's what you encouraged them to do.
If your aim is to collect more taxes, then why encourage those being taxed to seek to reduce their tax liability as low as possible?
Forgive me if I am missing the obvious. But this to me has never made sense.
Re: Senate report: Microsoft used loopholes to avoid billions in taxes
#7The use of the word "loopholes" indicates that Microsoft is complying with the law. The word "loopholes" also implies that Microsoft's actions aren't within the intent of the law, but the article provides no explanation on the intent of the law. So this article is an unfounded and unbalanced attack on Microsoft, no more interesting than saying "Microsoft is evil!".
Re: Senate report: Microsoft used loopholes to avoid billions in taxes
#8Firstly there are some simple issues that most international companies are very tax "efficient" - paying their alloyed fair share would drive most of the Fortune 500 into the red this year I am not saying that's a bad thing but it is a hard thing Secondly allocation of resources is soluble. - one example would be an international agreement to pool all taxes and share out to countries in proportion to employees per co…
What are you basing your assertion that most fortune 500 would be in the red on ? Corporate profit (post tax) are at a record high (e.g. http://elidourado.com/blog/the-short-run-is-short/).
Re: Senate report: Microsoft used loopholes to avoid billions in taxes
#9Earlier quoted context omitted.
Part of the issue, I think, is people finding new and creative ways of "send[ing] it to another branch" and we're playing whack-a-mole because we want to ban the behavior rather than the intent.
"ban the behavior rather than the intent" I think this sums it up quite nicely. The intent, which is encouraged by all branches and is culturally engrained (I will retrieve citations if requested), is "reduce your taxes as low as possible". With the right advisors, corporations can do this very effectively. This should not be a surprise to anyone. They will pay less, much less. After all, that's what you encouraged t…
> reduce your taxes as low as possible
It's not something that's "encouraged" or "culturally ingrained." It's simply a matter of lowering your costs.
Re: Senate report: Microsoft used loopholes to avoid billions in taxes
#10A new congressional investigation claims Microsoft has been able to avoid paying $6.5-billion in taxes since 2009 thanks to the complicated tax structure in the U.S.
The role of a CFO (and his office) is to do exactly what resulted above. Build a team of accountants, lawyers, and financial analysts that makes sure that the financial health of the company is strong. "Is this a tax credit we can take advantage of, do it." "Can we legally execute this transaction and conserve millions of dollars? do it."
If these items are legal based on federal law and pass Microsoft's board's scrutiny, then why is this even an issue?