EditorsAbout the SiteComes vs. MicrosoftUsing This Web SiteSite ArchivesCredibility IndexOOXMLOpenDocumentPatentsNovellNews DigestSite NewsRSS

10.27.09

Call for Federal Action Against Microsoft (and Gates) Tax Dodge

Posted in Bill Gates, Finance, Microsoft at 8:16 am by Dr. Roy Schestowitz

“My background is finance and accounting. As a socially conscious venture capitalist and philanthropist, I have a very good understanding of wealth management and philanthropy. I started my career in 1967 with the IRS as a specialist in taxation covering many areas of the tax law including the so-called legal loopholes to charitable giving. […] However, the Gates Buffet foundation grant is nothing more than a shell game in which control of assets for both Gates and Buffet remain the same. […] The only difference is that the accumulation of wealth by these two will be much more massive because they will no longer have to pay any taxes.”

The Gates and Buffet Foundation Shell Game

Summary: The financial affairs of Microsoft and its former chairman raise serious questions which the public demands addressal of

WHETHER one calls it a “tax dodge” or “tax evasion” (Microsoft was found guilty in India, for example), it is clear that poor Microsoft (and poor Bill) would rather let all those rich taxpayers take the bills. Yes, the same goes for the Gates Foundation, which is profiteering through investments while not paying tax (it is registered as a charitable establishment). We wrote quite extensively about Microsoft and income tax in, e.g.:

There is a new call for citizens of the United States to contact their representatives and complain about Microsoft’s tax dodge, which has cost the mostly-impoverished population billions of dollars all around the world (it is them who paid from their own pockets for what Microsoft ought to have paid). From a concerned and informed citizen:

When you buy Microsoft software in a box for personal use, you pay sales tax at the point of delivery. But, when large corporations purchase Microsoft software, they are actually buying an electronic download with the right to install that software on a pre-determined number of computers. The same goes for PC manufacturers such as Dell that preinstall Microsoft Windows 7 on its computers.

[...]

Aren’t there laws against this?

According to the Department of Revenue, to avoid this tax, a company, like Microsoft, would need to “effectively transfer the property to a related company (e.g., parent and subsidiary corporations) located outside Washington” and recognize income from the value of the transfer on its Washington taxes. It’s not clear that Microsoft has done this – and there are legal doctrines to charge a corporation if it illegally evades its taxes:

1) The doctrine of Nexus represents ties or links that a corporation has with a state. Microsoft clearly has nexus in Washington given its 40,224 employees, 9.8 million square feet and 79 physical sites. Its software also has nexus here as most is built, tested, marketed, sold and distributed from these facilities. Microsoft’s historical use of the laws of Washington to govern its licensing contracts, its Washington-based lawyers and its use of Washington’s courts to defend it also contribute to the nexus of its licensing business.

2) The Step Doctrine focuses on whether steps of a transaction may stand alone or, rather, whether the transaction should be treated as a whole. It can be applied when a corporation creates additional artificial steps to appear as if it is not liable to pay tax.

[...]

Do Microsoft’s Practices Constitute Illegal Tax Evasion?

Over the past few weeks, I’ve been asking Washington’s Department of Revenue to publish a finding on the legality of this kind of tax practice. The department is required to protect the privacy of taxpayers and therefore cannot answer specific questions about Microsoft only questions about specific practices in the abstract.

From Slashdot’s summary of the above:

For tax purposes, Microsoft reports that it’s earned its estimated $143 billion in software licensing revenue in Nevada, where there is no licensing tax, as we discussed a few weeks ago. However, for legal purposes, Microsoft relies on Washington law and its underfunded courts to defend its contracts as it did in Microsoft Licensing GP vs. TSR Silicon. Application of common legal doctrines such as nexus, the step doctrine, and alter ego theory may lead to findings that Microsoft owes the state more than $1 billion in taxes, interest, and penalties.

Not enough attention is being paid to Bill Gates’ stash of questionable investment funds that he shelters inside a supposedly-philanthropist body, just like other people with his type of wealth. They have found a loophole, so even if laws are ever passed to effectively tax the upper class, most of their money will be kept away from applicability of such laws.

People must begin asking themselves these important questions and learn about the subject using the means and time available. The mainstream press is the friend of those who are buying/funding it, so rarely does it have the courage to expose those who fund it; doing so would essentially drive them out of business because money comes from business (advertisers), not readers and viewers. To press/broadcast, readers and viewers are the products that they sell to advertisers, i.e. businesses that are the real clients. To whit:

“Truthfulness with me is hardly a virtue. I cannot discriminate between truths that and those that don’t need to be told.”

Margot Asquith

In response to our last post on the subject, namely the one about the Gates Foundation and the Rockefeller Foundation, one person replied with the following:

Just look at who all the food-related groups which the Rockefeller Foundation funds:

CSPI (Center for Science in the Public Interest) – the “food police” who back in March 1988 said that trans fats were “relatively harmless”

* Consumer Federation of America (CFA) – used to be headed by Monsanto shill Carol Tucker ForemanMonsanto

PETA – animal “rights” group which kills most of the pets they “rescue” (actually funded by the Rockefeller Philanthropy Advisors)

* Nutrition Action newsletter, March 1988, “The Truth About Trans – Hydrogenated Oils Aren’t Guilty As Charged”

There is also this new gem about the Gates Foundation:

The Financial Times last week ran a story titled “Bill Gates shifts focus to hunger”, covering a major speech by Gates detailing a new emphasis by his foundation on food security and agricultural output in developing countries.

[...]

Second, will the Foundation invest in the type of engagement and advocacy on trade policy issues (exhibit A: subsidies to developed world agricultural industry) that deeply influence food security, especially in sub-Saharan Africa? While the development of new technologies and tools is critical and has often been the Gates Foundation’s sweet-spot, major progress will be held back without a serious shift in the global economic system around agriculture and food.

Here is more information about what the Gates Foundation is doing in Africa [1, 2, 3, 4, 5].

Share this post: These icons link to social bookmarking sites where readers can share and discover new web pages.
  • Digg
  • del.icio.us
  • Reddit
  • co.mments
  • DZone
  • email
  • Google Bookmarks
  • LinkedIn
  • NewsVine
  • Print
  • Technorati
  • TwitThis
  • Facebook

If you liked this post, consider subscribing to the RSS feed or join us now at the IRC channels.

Pages that cross-reference this one

What Else is New


  1. Links 24/8/2016: More From LinuxCon, Uganda Wants FOSS

    Links for the day



  2. Links 23/8/2016: GNOME 3.22 Beta, Android 7.0 Nougat

    Links for the day



  3. The Linux Foundation Gives Microsoft (Paid-for) Keynote Position While Microsoft Extorts (With Patents) Lenovo and Motorola Over Linux Use

    This morning's reminder that Nadella is just another Ballmer (with a different face); Motorola and Lenovo surrender to Microsoft's patent demands and will soon put Microsoft spyware/malware on their Linux-powered products to avert costly legal battles



  4. Not Just President Battistelli: EPO Vice-Presidents Are Still Intentionally Misrepresenting EPO Staff

    Evidence serving to show that EPO Vice-Presidents are still intentionally misrepresenting EPO staff representatives and misleading everyone in order to defend Battistelli



  5. Battistelli the Liar Causes a Climate of Confrontation in French Politics, Lies About Patent Quality (Among Many Other Things)

    Battistelli's lies are coming under increased scrutiny inside and outside the European Patent Office (EPO), where patent quality has been abandoned in order to artificially elevate figures



  6. The Collapse of Software Patents and Patent Law Firms Trying to “Overcome” Alice

    The United States continues its gradual crackdown on software patents (which are viewed as abstract and thus unpatentable), whereas in Europe things are murkier than ever



  7. Apple's Patent Wars Against Android/Linux Make Patent Trolls Stronger

    Apple's insistence that designs should be patentable could prove to be collectively expensive, as patent trolls would then use a possible SCOTUS nod to launch litigation campaigns



  8. Links 22/8/2016: Linux 4.8 RC3, Linux Mint 18 “Sarah” KDE Beta

    Links for the day



  9. Links 21/8/2016: Apple and Microsoft Down, Systemd Spreading to Mount

    Links for the day



  10. Links 20/8/2016: Android Domination, FSFE summit 2016

    Links for the day



  11. Patents Roundup: Trolls Dominate Litigation, PTAB Crushes Patents, Patent Box Regime Persists, and OIN Explains Itself

    Another roundup of patent news from around the Web with special focus on software patenting



  12. The Cost/Toll of the 'New' EPO and Where All That Money Goes or Comes From

    The European Patent Office has become a servant of the rich and powerful (including large foreign corporations) and even its own employees now pay the price associated with misguided new policies (or 'reforms' as Battistelli habitually refers to these)



  13. Links 19/8/2016: Linux Mint With KDE, Linux Foundation's PNDA

    Links for the day



  14. The End of an Era at the USPTO as Battistelli-Like (EPO) Granting Policies Are Over

    The United States is seeing the potency of patents -- especially software patents (which make up much of the country's troll cases) -- challenged by courts and by the Patent Trial and Appeal Board (PTAB)



  15. Battistelli's European Patent Office Goes to the United States to Speak About the UPC and Software Patents

    The European Patent Office is showing its utter contempt -- not just disregard -- for the very fundamental rules that put it in its place and brought it into existence



  16. Turkey Subjected to the European Patent Convention (EPC) But Benoît Battistelli is Not?

    The ‘constitutional crisis’ at the European Patent Office in the context of Turkey, which has signed "the EPC and as such recognises the competence and the decisions of the institutions which have been introduced in the convention."



  17. Links 18/8/2016: EFF Slams Vista 10, Linux Foundation Makes PNDA

    Links for the day



  18. Links 17/8/2016: GNOME and Debian Anniversaries

    Links for the day



  19. Personal Audio LLC and Patent Troll Jim Logan Demonstrate the Harms of Software Patents and Why They Must Never Spread to Europe

    Jim Logan of Personal Audio (a notorious Texas-based patent troll) is still fighting with his bogus patent, having already caused enormous damage with a single software patent that should never have been granted in the first place (due to prior art, not just Alice)



  20. The Patent Microcosm Hopes That the Originators of Software Patents Will Undermine the Patent Trial and Appeal Board

    Now that the actions of the Patent Trial and Appeal Board (PTAB), which have been consistently upheld by the CAFC in precedential decisions, are suddenly being questioned the patent microcosm gets all giddy and tries to undermine PTAB (again)



  21. That Time When the Administrative Council Helped Battistelli Crush Oversight (Audit Committee) and What ILO Said About It a Month Ago

    Things are becoming ever more troublesome at the EPO as the Administrative Council enjoys inaction from the International Labour Organization (ILO), in spite of its role in destroying much-needed oversight at the behest of Battistelli



  22. The EPO's Administrative Council Keeps Postponing Debate About Grounds for Firing the President

    A recollection of events prior to the latest Administrative Council meeting, where Benoît Battistelli's failings and accountability for failing to correct them never even came up



  23. A Surge of Staff Complaints About the European Patent Office Drowns the System, Disservice to Justice Noted

    Self-explanatory graphs about the state of the justice [sic] system which is prejudiced towards/against EPO workers, based on internal reports



  24. Links 16/8/2016: White House Urged by EFF on FOSS, Go 1.7 Released

    Links for the day



  25. Links 15/8/2016: Linux 4.8 RC2, Glimpses at OpenMandriva Lx 3.0

    Links for the day



  26. Clawing Back the Staff Benefits at the European Patent Office (EPO)

    Staff of the EPO is leaving (or retiring) in droves as abusive management continues to be the norm and staff benefits are being taken away or gradually revoked



  27. The Patent Microcosm is Panicking and Spinning Alice/§ 101 Because US Software Patents Are Still Dying

    A look at recent developments in the software patents scene in the United States, with increased focus on (or fear of) the Patent Trial and Appeal Board



  28. 21,000 Posts in Techrights in Less Than a Decade

    This post is the 21,000th post and the next one will make it more than twenty-one thousand posts in total. We are turning 10 in November.



  29. Patent Microcosm Shuts Out the Poor: Unified Patent Court (UPC) Promotion by Practising Law Institute (PLI) Only for the Wealthy

    The people who are profiting from patent feuds, disputes, lawsuits etc. are still trying to muscle their will into European law and they keep the general public out of it by locking down (or pricing out of reach) their meetings where they influence/lobby decision-making officials



  30. The United States Has a Growing Patent Trolls Epidemic as Very High Proportion of Lawsuits Filed by Them

    A look at the high proportion of patent lawsuits that are filed by entities that make nothing at all and thus serve no role whatsoever in innovation


CoPilotCo

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

CoPilotCo

Recent Posts