(Washington) The US tax authorities are demanding $28.9 billion from Microsoft for unpaid amounts between 2004 and 2013, as well as interest and penalties, according to a stock market document published Wednesday by the IT giant.
Microsoft announces in this same document that the group will contest the requests of the tax authorities (IRS) and that it could even initiate legal proceedings if necessary.
“It is important to note that the IRS appeal process will take several years and if we do not reach a direct agreement with the IRS, Microsoft will then have the opportunity to challenge the unresolved issues in court.” , underlines Daniel Goff, the company’s vice-president, responsible for international tax issues.
He says the dispute concerns the distribution of his profits between countries and jurisdictions between 2004 and 2013. He estimates that the IRS failed to take into account up to $10 billion in taxes already paid by Microsoft.
“We believe we still have […] paid the taxes we owed in the United States and around the world,” he insists.
According to the stock market document, Microsoft considers its provisions for tax risks to be “sufficient” at this stage.
“We do not expect a final resolution of these issues within the next 12 months. Based on currently available information, we do not anticipate a significant increase or decrease in our tax provisions for these matters over the next 12 months,” the technology group specifies.
Microsoft achieved $212 billion in revenue for its last annual fiscal year (ending June 30, 2023), of which it generated more than $72.4 billion in net profits.