05.12.09

Gemini version available ♊︎

Microsoft Debt and Tax Evasion

Posted in Finance, Microsoft at 8:06 am by Dr. Roy Schestowitz

“There is such an overvaluation of technology stocks that it is absurd. I would include our stock in that category. It is bad for the long-term worth of the economy.”

Steve Ballmer

Summary: Microsoft reenters “Reality Mode” as financial issues inevitably surface

IT WOULD only be reasonable to say that following Microsoft's abysmal results (earnings are down 32%) and additional layoffs, Microsoft struggles to hide its problems. We’ve already remarked on Microsoft’s massive tax evasion [1, 2] (billions of dollars per year) and even the Seattle press cannot turn a blind eye to it, despite the harm this may cause to their beloved Microsoft. That’s billions of dollars that Microsoft virtually took from taxpayers’ pockets (the hidden “Microsoft tax”).

How Obama’s tax reforms could impact Microsoft’s bottom line

[...]

The debate hinges on policies that let companies with international operations avoid higher U.S. tax rates by reinvesting their foreign earnings overseas. The Obama administration last Monday detailed its plan to put a damper on that practice.

“Currently, businesses that invest overseas can take immediate deductions on their U.S. tax returns for expenses supporting their overseas investments but nevertheless ‘defer’ paying U.S. taxes on the profits they make from those investments,” the White House said in a May 4 briefing document. “As a result, U.S. taxpayer dollars are used to provide a significant tax advantage to companies who invest overseas relative to those who invest and create jobs at home.”

From the same publication comes this report about Microsoft debt.

Microsoft, which has historically avoided borrowing money, this morning took the next step in its previously announced plan to raise funds through a public debt offering. The company made the move in a preliminary prospectus filed with the Securities and Exchange Commission.

It underplays the severity of the matter. This Microsoft-sympathetic reporter cites a Bloomberg article from another reporter who is close to Microsoft (Dina Bass). This leads to the funny feeling and suspicion that Microsoft is spinning this discomforting (probably obligatory) disclosure using all of its friends in the press. It’s a familiar strategy when attacking competition (seed, the reference and repeat). Microsoft debt would not surprise us though. See for example what we wrote in:

A Microsoft shareholder already likens Steve Ballmer and Bill Gates to Bernard Madoff and other shareholders are equally resentful and want Steve Ballmer out.

When it comes to Microsoft’s news about debt, we have already alluded to it yesterday. Also yesterday in the very same post we showed that Microsoft is attacking Google using regulators. It’s worth keeping an eye on Christine Varney because TechCrunch suggests she may try to deflect antitrust pressure from Microsoft onto Google.

Watch Out Google, Obama’s Antitrust Chief Is Looking To Make An Example Out Of You

The Obama Administration’s new chief antitrust enforcer at the Department of Justice, Christine Varney, is making it very clear that she is going to be much more aggressive in bringing antitrust actions against large, American corporations.

Microsoft has its share of government insiders [1, 2, 3, 4, 5, 6, 7, 8] with whom it can attack Google via the authorities. There is precedence here, so it’s just not a theory; it’s predicated upon Microsoft’s consistent behaviour and Microsoft is at great risk right now, so it’s merciless.

Debt and demand

Share in other sites/networks: These icons link to social bookmarking sites where readers can share and discover new web pages.
  • Reddit
  • email

Decor ᶃ Gemini Space

Below is a Web proxy. We recommend getting a Gemini client/browser.

Black/white/grey bullet button This post is also available in Gemini over at this address (requires a Gemini client/browser to open).

Decor ✐ Cross-references

Black/white/grey bullet button Pages that cross-reference this one, if any exist, are listed below or will be listed below over time.

Decor ▢ Respond and Discuss

Black/white/grey bullet button If you liked this post, consider subscribing to the RSS feed or join us now at the IRC channels.

DecorWhat Else is New


  1. The EPO’s Overseer/Overseen Collusion — Part XXV: The Balkan League - Fresh Blood or Same Old, Same Old?

    We take stock of "captured states" that voted in favour of unlawful "Strike Regulations"



  2. IRC Proceedings: Tuesday, October 26, 2021

    IRC logs for Tuesday, October 26, 2021



  3. Beatriz Busaniche Speaks Up in Defense of Richard Stallman

    Beatriz Busaniche sent us this comment in July 2021. She wrote it originally in Spanish. Here are both the original text and our translation to English.



  4. Links 26/10/2021: SUSE Linux Enterprise Micro 5.1 and Multi-Distro Benchmarks

    Links for the day



  5. Links 26/10/2021: Vulkan 1.1 Conformance for Raspberry Pi 4 and Tor Browser 10.5.10

    Links for the day



  6. [Meme] Sounds Legit

    When not cheating on the wife, the EPO‘s “doyen” cheats in the exams and makes it into the epi Council, in effect working “[t]owards a common understanding [sic] of quality” with “patent attorneys nominated as “assessors” by the EPO, epi and BusinessEurope” (notorious lobbyists for dictators, litigation, and monopolies, neither business nor science)



  7. [Meme] Mayoral Patent Office Chief

    As it turns out, political 'double-dipping' isn't just a thing in North Macedonia, Austria, and EPOnia



  8. Romania's Patent Office (OSIM): Nine Different Chiefs in Just Eight Years

    The Romanian State Office for Inventions and Trademarks (OSIM), being the equivalent of the U.S. Patent and Trademark Office (USPTO) in the sense that it covers both patents and trademarks, is a very flaky institution with no shortage of scandals; for our English-reading audiences we now have a summary of a decade’s worth of blunders and leadership changes



  9. The EPO’s Overseer/Overseen Collusion — Part XXIV: The Balkan League - Romania

    Romania’s patent office has been in flux this past decade, occasionally led by people with no relevant experience, but rather political connections (like EPO President António Campinos) and sometimes forged documents and fake degrees



  10. IRC Proceedings: Monday, October 25, 2021

    IRC logs for Monday, October 25, 2021



  11. [Meme] “Social Democracy” at the EPO

    Some comments on the current situation at the European Patent Office from Goran Gerasimovski, the new EPO Administrative Council delegate for North Macedonia and Social Democratic candidate for mayor of Centar (a municipality of Skopje)



  12. [Meme] António Campinos Visits the OSIM

    António Campinos visits OSIM Director-General Ionel Muscalu in February 2014



  13. [Meme] [Teaser] Meet the President

    Later today we shall see what Romania did for Battistelli



  14. Links 26/10/2021: Latte Dock 0.10.3 and Linux 5.15 RC7

    Links for the day



  15. Gemini Protocol's Originator: “I Continue to Care About This Project and I Care About the Community That Has Formed Around It.”

    'Solderpunk' is back from a long hiatus; this bodes well for Geminispace, which grew fast in spite of the conspicuous absence



  16. Bulgarian Like Bavarian Serfdom

    Bulgarian politics seem to have played a big role in selecting chiefs and delegates who backed Benoît Battistelli‘s unlawful proposals, which treat workers almost like slaves and ordinary citizens as disposable ‘collaterals’



  17. The EPO’s Overseer/Overseen Collusion — Part XXIII: The Balkan League - Bulgaria

    Today we examine the role of Bulgaria in Benoît Battistelli‘s liberticidal regime at the EPO (as well as under António Campinos, from 2018 to present) with particular focus on political machinations



  18. Links 25/10/2021: New Slackware64-current and a Look at Ubuntu Budgie

    Links for the day



  19. Links 25/10/2021: pg_statement_rollback 1.3 and Lots of Patent Catchup

    Links for the day



  20. Microsoft GitHub Exposé — Part III — A Story of Plagiarism and Likely Securities Fraud

    Today we tread slowly and take another step ahead, revealing the nature of only some among many problems that GitHub and Microsoft are hiding from the general public (to the point of spiking media reports)



  21. [Meme] [Teaser] Oligarchs-Controlled Patent Offices With Media Connections That Cover Up Corruption

    As we shall see later today, the ‘underworld’ in Bulgaria played a role or pulled the strings of politically-appointed administrators who guarded Benoît Battistelli‘s liberticidal regime at the EPO



  22. IRC Proceedings: Sunday, October 24, 2021

    IRC logs for Sunday, October 24, 2021



  23. Links 25/10/2021: EasyOS 3.1 and Bareflank 3.0

    Links for the day



  24. The Demolition of the EPO Was Made Possible With Assistance From Countries That Barely Have European Patents

    The legal basis of today's EPO has been crushed; a lot of this was made possible by countries with barely any stakes in the outcome



  25. The EPO’s Overseer/Overseen Collusion — Part XXII: The Balkan League - North Macedonia and Albania

    We continue to look at Benoît Battistelli‘s enablers at the EPO



  26. Links 24/10/2021: GPS Daemon (GPSD) Bug and Lots of Openwashing

    Links for the day



  27. Links 24/10/2021: XWayland 21.1.3 and Ubuntu Linux 22.04 LTS Daily Build

    Links for the day



  28. IRC Proceedings: Saturday, October 23, 2021

    IRC logs for Saturday, October 23, 2021



  29. Links 24/10/2021: Ceph Boss Sage Weil Resigns and Many GPL Enforcement Stories

    Links for the day



  30. GAFAM-Funded NPR Reports That Facebook Let Millions of People Like Trump Flout the So-called Rules. Not Just “a Few”.

    Guest post by Ryan, reprinted with permission


RSS 64x64RSS Feed: subscribe to the RSS feed for regular updates

Home iconSite Wiki: You can improve this site by helping the extension of the site's content

Home iconSite Home: Background about the site and some key features in the front page

Chat iconIRC Channel: Come and chat with us in real time

Recent Posts