Microsoft would avoid taxes on billions of dollars in several countries

(London) In the United Kingdom, Australia or New Zealand: the American computer giant Microsoft avoids, thanks to a complex structure, paying taxes on billions of dollars in countries where it nevertheless holds lucrative public contracts , according to a study released Thursday.

“In many cases, Microsoft has paid no tax in recent years by transferring profits to companies domiciled in Bermuda and other tax havens,” the Center for Corporate Tax Research and Accountability said in a statement. (Cictar), a research firm based in Australia.

“Microsoft boasts of offering profit margins of more than 30% to its shareholders. Yet in the UK, Australia and New Zealand, [l’entreprise] reports returns of 3 to 4% “only, is surprised Jason Ward, analyst of the firm, quoted in the press release.

“It doesn’t seem credible that these thriving markets are showing such poor performance,” he adds, seeing it as “a huge red flag of tax avoidance,” which “deprives the public sector of much-needed revenue. need”, despite the “billions earned as a supplier to the governments” of these countries.

According to the study, Microsoft Global Finance, an Irish subsidiary that is tax resident in Bermuda, centralized more than $100 billion in investments and, despite operating profit of $2.4 billion, n paid no tax in 2020.

Another example cited by Cictar, Microsoft Singapore Holdings published in 2020 profits, coming from dividends, of 22.4 billion dollars, but announced a tax charge of only 15 dollars.

Microsoft has however concluded these last five years of public contracts whose amounts amount to at least 3.3 billion dollars in the United Kingdom, United States, Australia or Canada, according to the data of this study.

The firm points out that Microsoft is under investigation by tax authorities in the United States and other countries, including Australia, and that “more than 80% of its total foreign income passes through Puerto Rico and Ireland. “.

“In fiscal 2021 and 2020, our foreign regional operating centers in Ireland and Puerto Rico, which are taxed at rates below the US rate, generated 82% and 86% of our pre-tax foreign income,” said Microsoft in its 2021 annual report.

Contacted by the authors of the report, Microsoft ensured compliance with “all local laws and regulations” in the countries where it operates.