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Microsoft paid $0 taxes on $315 Billion in profits in 2020.

Orale

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Orale

Orale 1087

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https://www.theguardian.com/world/2021/jun/03/microsoft-irish-subsidiary-paid-zero-corporate-tax-on-220bn-profit-last-year

Quote

An Irish subsidiary of Microsoft made a profit of $315bn (£222bn) last year but paid no corporation tax, as it is “resident” for tax purposes in Bermuda.

The company, Microsoft Round Island One, posted profits last year equal to nearly three-quarters of Ireland’s entire gross domestic product (GDP) – despite having zero employees.

The subsidiary, which collects licence fees for use of copyrighted Microsoft software around the world, recorded an annual profit of $314.7bn in the year to the end of June 2020, according to accounts filed at the Irish Companies Registration Office. Its profits jumped from just under $10bn the previous year and compare with Ireland’s 2020 GDP of €357bn ($437bn).

Other than rage I don't have a particularly point to make. I know the Fed chair and Treasury Secretary are working on a world wide minimum corporate tax rate. The lack of patriotism and sense of civic responsibility by American corporations is appalling. Even at a corporate 20% tax rate, this is $60bn in taxes avoided that could do a lot of good in the U.S. I'm curious what the right wing argument in favor of this is.  

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Incredulity

Incredulity 11555

Posted
Posted

Misleading headline is misleading.

The 300 billion was gain on sale of a foreign subsidiary held in a foreign subsidiary.  What right does the USA have to entirely foreign business income?

 

Should Iowa be able to tax a company for business it does in Illinois?

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MaybeACoordinator

MaybeACoordinator 8349

Posted
Posted
6 minutes ago, Incredulity said:

Misleading headline is misleading.

The 300 billion was gain on sale of a foreign subsidiary held in a foreign subsidiary.  What right does the USA have to entirely foreign business income?

 

Should Iowa be able to tax a company for business it does in Illinois?

Uncle Sam took a piece of my wee little UK income tax refund check after I worked overseas.

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Judge Roybeanbag

Judge Roybeanbag 11810

Posted
Posted
7 minutes ago, Incredulity said:

Misleading headline is misleading.

The 300 billion was gain on sale of a foreign subsidiary held in a foreign subsidiary.  What right does the USA have to entirely foreign business income?

 

Should Iowa be able to tax a company for business it does in Illinois?

I didn't see in the article where it was "gain sale of a foreign subsidiary held in a foreign subsidiary".  Where was that stated?  It was sales/profits of a foreign subsidiary, held by another foreign subsidiary.

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Incredulity

Incredulity 11555

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Posted
Just now, Judge Roybeanbag said:

I didn't see in the article where it was "gain sale of a foreign subsidiary held in a foreign subsidiary".  Where was that stated?  It was sales/profits of a foreign subsidiary, held by another foreign subsidiary.

In the linked statement in the Guardian article. 

 

Microsoft has approx 140 billing in REVENUE

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RomaVicta

RomaVicta 29794

Posted
Posted
1 minute ago, Incredulity said:

Misleading headline is misleading.

The 300 billion was gain on sale of a foreign subsidiary held in a foreign subsidiary.  What right does the USA have to entirely foreign business income?

 

Should Iowa be able to tax a company for business it does in Illinois?

THANK GOD YOU'RE HERE TO EXPLAIN THIS TO US IN TERMS WE CAN UNDERSTAND!!!!!!

You need to extend your services to the international community...of dunces! Amirite?

From the link:

Quote

Microsoft Round Island One, whose registered address is at an office of the law firm Matheson, on the River Liffey in central Dublin, states in its accounts that it has “no employees other than the directors”. In its tax statement it says: “As the company is tax resident in Bermuda, no tax is chargeable on income.”

Bermuda does not levy corporation tax.

The company paid a $24.5bn dividend to Microsoft Corporation during the financial year, followed by a further special dividend of $30.5bn.

Tax transparency campaigners described the “tax aggression displayed by Microsoft, and facilitated by Ireland” as “beyond belief”.

To alter your example:

Should Iowa be able to tax a company for business it does in Illinois? Should corporations pay taxes anywhere?

I finally read Fear, Woodward's book about Trump's first year. Really good. There is interesting policy discussion in it including the perspective that lowering the corporate tax to that in countries that charge less would get at least something for the US coffers instead of losing all the revenue overseas. Made sense.

An international agreement about corporate tax hideouts is a good idea on the surface at least. I know the issue no deeper than that (still likely better than Incredulity who thinks Illinois and Iowa function like Bermuda and Ireland). 

I did read years ago that the US is actually a pretty good haven for some foreign companies, so we have evidently played the dirty little game ourselves. Let's see how the US acts in these negotiations. I'm sure Trump would have decried them and pulled the US out.

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Incredulity

Incredulity 11555

Posted
Posted (edited)
6 minutes ago, RomaVicta said:

THANK GOD YOU'RE HERE TO EXPLAIN THIS TO US IN TERMS WE CAN UNDERSTAND!!!!!!

You need to extend your services to the international community...of dunces! Amirite?

From the link:

To alter your example:

Should Iowa be able to tax a company for business it does in Illinois? Should corporations pay taxes anywhere?

I finally read Fear, Woodward's book about Trump's first year. Really good. There is interesting policy discussion in it including the perspective that lowering the corporate tax to that in countries that charge less would get at least something for the US coffers instead of losing all the revenue overseas. Made sense.

An international agreement about corporate tax hideouts is a good idea on the surface at least. I know the issue no deeper than that (still likely better than Incredulity who thinks Illinois and Iowa function like Bermuda and Ireland). 

I did read years ago that the US is actually a pretty good haven for some foreign companies, so we have evidently played the dirty little game ourselves. Let's see how the US acts in these negotiations. I'm sure Trump would have decried them and pulled the US out.

Read the fucking disclosure linked in the Guardian article.

 

What a dildo.

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RomaVicta

RomaVicta 29794

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Posted
1 minute ago, Incredulity said:

Read the fucking disclosure linked in the Guardian article.

 

What a dildo.

I suppose that proves that US state tax codes align with international corporate tax manipulation. I guess it will also give the lie to the part of the main article I quoted stating that the company located in Dublin is a tax resident of Bermuda thus escapes paying any corporate tax to anyone. Must be one hell of a link.

Well, you were right about me being a dildo. Score one for ol' Incredulity, another sad victim of the CR Lefty Cabal Circle Jerk (CRLCCJ).

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fattyflattie

fattyflattie 4636

Posted
Posted
18 minutes ago, MoJames said:

Wait Iowa and Illinois are two diff places?

Not really. 
 

1 hour ago, Orale said:

Even at a corporate 20% tax rate, this is $60bn in taxes avoided that could do a lot of good in the U.S.

With that kind of loot, we could pay waiters and Uber drivers to sit at home and collect money forever.  

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Biff Tannen

Biff Tannen 45499

Posted
Posted
1 hour ago, Orale said:

I'm curious what the right wing argument in favor of this is.  

The real answer to this is a combination of thinking they might one day be super wealthy and don’t want to pay taxes and also some form of “hey, they’re just gaming the system. Good for them.”

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Judge Roybeanbag

Judge Roybeanbag 11810

Posted
Posted
2 minutes ago, Biff Tannen said:

The real answer to this is a combination of thinking they might one day be super wealthy and don’t want to pay taxes and also some form of “hey, they’re just gaming the system. Good for them.”

Taxes are for suckers and losers.  Happy post-memorial day!

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Guest Lobo

Guest Lobo

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Posted
18 minutes ago, Incredulity said:

Shovel Ready Infrastructure, that's the answer.

Sweet.  I could totally go for an Infrastructure Week.  I'll need to get some extra whiskey first. 

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MonkeyDoughnut

MonkeyDoughnut 10145

Posted
Posted
1 hour ago, Orale said:

https://www.theguardian.com/world/2021/jun/03/microsoft-irish-subsidiary-paid-zero-corporate-tax-on-220bn-profit-last-year

Other than rage I don't have a particularly point to make. I know the Fed chair and Treasury Secretary are working on a world wide minimum corporate tax rate. The lack of patriotism and sense of civic responsibility by American corporations is appalling. Even at a corporate 20% tax rate, this is $60bn in taxes avoided that could do a lot of good in the U.S. I'm curious what the right wing argument in favor of this is.  

This isn't on Microsoft, this is on Congress writing shitty tax laws that make it possible.  As for the patriotism and sense of civic responsibility in paying taxes, much of that ended for me personally seeing how poorly and irresponsibly they use the money they do get. There are better places that can use my "overpayment avoidance" more responsibly.

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Neonmoon

Neonmoon 38127

Posted
Posted
3 minutes ago, MonkeyDoughnut said:

This isn't on Microsoft, this is on Congress writing shitty tax laws that make it possible.  As for the patriotism and sense of civic responsibility in paying taxes, much of that ended for me personally seeing how poorly and irresponsibly they use the money they do get. There are better places that can use my "overpayment avoidance" more responsibly.

It’s not my fault I’m a shitty person, there’s no law against it!

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Bullneck

Bullneck 18987

Posted
Posted
1 hour ago, Incredulity said:

Misleading headline is misleading.

The 300 billion was gain on sale of a foreign subsidiary held in a foreign subsidiary.  What right does the USA have to entirely foreign business income?

 

Should Iowa be able to tax a company for business it does in Illinois?

Would there be a MS subsidiary in Ireland if the purpose wasn't to avoid US taxes?

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freyguy

freyguy 4245

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Posted
3 minutes ago, Bullneck said:

Would there be a MS subsidiary in Ireland if the purpose wasn't to avoid US taxes?

Foreign govt subsidies.  There's actually been a hi tech presence in Ireland for decades.  Other unsurprising news flash:  European govt's heavily subsidize corporations to keep their people employed. 

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Bullneck

Bullneck 18987

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1 minute ago, freyguy said:

Foreign govt subsidies.  There's actually been a hi tech presence in Ireland for decades.  Other unsurprising news flash:  European govt's heavily subsidize corporations to keep their people employed. 

Do you think you answered my question?  

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Bullneck

Bullneck 18987

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Posted

Slightly, but just slightly, unrelated comment:

Every time I've been to St. Barths there are huge yachts in Gustavia flying Cayman Island flags.  Huge.  

They all list their home port as "Georgetown."  Makes you wonder why that's such popular place.  

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David Dennison

David Dennison 18661

Posted
Posted
2 hours ago, Incredulity said:

Misleading headline is misleading.

The 300 billion was gain on sale of a foreign subsidiary held in a foreign subsidiary.  What right does the USA have to entirely foreign business income?

Should Iowa be able to tax a company for business it does in Illinois?

If Microsoft is the parent, it isn't entirely foreign.

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We’reTexas

We’reTexas 1469

Posted
Posted
21 minutes ago, David Dennison said:

If Microsoft is the parent, it isn't entirely foreign.

It is. Microsoft needs to set up foreign subs in foreign markets to do business. As with many companies, onshoring IP to Ireland has become the most tax efficient structure for non-US operations. 

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Willfully Horn

Willfully Horn 7916

Posted
Posted
1 hour ago, MonkeyDoughnut said:

This isn't on Microsoft, this is on Congress writing shitty tax laws that make it possible.  As for the patriotism and sense of civic responsibility in paying taxes, much of that ended for me personally seeing how poorly and irresponsibly they use the money they do get. There are better places that can use my "overpayment avoidance" more responsibly.

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