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Yank the ladder up? Are you a cryptocurrency / superstonk / Wall Street Bets poster or something? The SEC should be going after scams and cults as well as corporate tax, it's a false dichotomy you're proposing.
Microsoft SEC 8-K: IRS is seeking an additional tax payment of $29B
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Re: Microsoft SEC 8-K: IRS is seeking an additional tax payment of $29B
#12I know we're not supposed to editorialize the titles, but this one really buries the lede.
Re: Microsoft SEC 8-K: IRS is seeking an additional tax payment of $29B
#13>>> Item 8.01. Other Information
On October 11, 2023, Microsoft Corporation announced the receipt of Notices of Proposed Adjustment (“NOPAs”) from the Internal Revenue Service (the “IRS”) for the tax years 2004 to 2013. The NOPAs were received on September 26, 2023. The primary issues in the NOPAs relate to intercompany transfer pricing. In the NOPAs, the IRS is seeking an additional tax payment of $28.9 billion plus penalties and interest. As of September 30, 2023, we believe our allowances for income tax contingencies are adequate. We disagree with the proposed adjustments and will vigorously contest ...
So MS income for 2023 was 211 BN, EBIT on that was 88BN. So being asked to give back 28.9BN is a big hit on anyone's scale, but it's "just" 3BN a year (2004-13) on annual profits of ~88BN - so it's not like it's their whole business model.
Intra-company transfers are a tricky way to move assets and liability around inside a firm - because it's not "really" selling there can be a lot of creativity. For example Starbucks was accused over many years of having foreign subsidiaries "purchase" coffee beans from Seattle at a price that co-incidentally matched the foreign subsidiaries operating profit - essentially meaning only the seattle firm made a profit and so only they had to pay tax.
Something similar is being suggested here. It's not clear what.
However it's worth noting that some years ago Biden announced major new funding for IRS to go after big firms. If this is part of that and if this comes to some agreement in a few years it will pay for that whole initiative several times over.
Interesting
Re: Microsoft SEC 8-K: IRS is seeking an additional tax payment of $29B
#14[flagged]
Yank the ladder up? Are you a cryptocurrency / superstonk / Wall Street Bets poster or something? The SEC should be going after scams and cults as well as corporate tax, it's a false dichotomy you're proposing.
Actually no, but nice try, and I'm sure your extremist uninformed view of what's a "cult" is representative of the SEC's general posture.
Re: Microsoft SEC 8-K: IRS is seeking an additional tax payment of $29B
#15[flagged]
Re: Microsoft SEC 8-K: IRS is seeking an additional tax payment of $29B
#16Wow. “The IRS says Microsoft owes an additional $28.9 billion in tax for 2004 to 2013, plus penalties and interest.” No wonder why they’re talking about charging for windows 12 features, has to come from somewhere!
They have over 115 Billion cash on hand.
But I bet a lot of that is in long term treasuries which, if you want to use them as legal tender, are kinda down in price right now (if you don't hold them til maturity). And if they need to take a loan to pay it, those bonds are going to be at fairly high rates. Overall, it's gonna be a stock price haircut for sure. I'm guessing at least 10-20% because of all the money they could have MADE with that money.
Re: Microsoft SEC 8-K: IRS is seeking an additional tax payment of $29B
#17Earlier quoted context omitted.
Yank the ladder up? Are you a cryptocurrency / superstonk / Wall Street Bets poster or something? The SEC should be going after scams and cults as well as corporate tax, it's a false dichotomy you're proposing.
Actually no, but nice try, and I'm sure your extremist uninformed view of what's a "cult" is representative of the SEC's general posture.
Then I'm not sure what you're worried about, if it really isn't a cult as you imply. Either way, I don't understand your position on the matter, are you personally affected by the SEC going after cryptocurrency scams and WSB style stock traders?
Re: Microsoft SEC 8-K: IRS is seeking an additional tax payment of $29B
#18Wow. “The IRS says Microsoft owes an additional $28.9 billion in tax for 2004 to 2013, plus penalties and interest.” No wonder why they’re talking about charging for windows 12 features, has to come from somewhere!
This is before any negotiated settlement, if they are found to have to pay at all, which will be, in all likelihood, substantially lower
Re: Microsoft SEC 8-K: IRS is seeking an additional tax payment of $29B
#19[flagged]
Re: Microsoft SEC 8-K: IRS is seeking an additional tax payment of $29B
#20So... Amy Hood is out, right? Accountability and all.