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

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 30/11/2020: GhostBSD 20.11.28, Nitrux 1.3.5, Linux 5.10 RC6, GNOME Circle, Microsoft Collapses Again in Web Server Share

    Links for the day



  2. Alternatives to the World Wide Web, to HTML, to HTTP/S, and to the Internet

    Looking around the Web (yes, the Web) for alternatives to the Web (and the stack underneath the Web), we're finding that IPFS is mature and robust enough for our needs



  3. Management of the EPO Dragged to the International Labour Organisation Over Its Assault on the Right to Strike

    Opinion on strikes challenged by the Central Staff Committee of Europe's second-largest organisation; if strike rights are almost abolished there, what hope is there for the rest of Europe?



  4. [Meme] Management of the EPO Cannot Let the Staff Breathe or Smell Freedom

    Working for the EPO means giving up on one’s human rights; that’s the sort of conclusion many workers have reached



  5. “ViCo” is Nothing New (Not Even the Acronym), Done on 9/11 Last Year, Been Possible as Long as the EPO Has Existed

    Contrary to what many people are led to believe, the EPO isn't embracing innovation, it's just embracing COVID-19 and leveraging lock-downs (de facto house arrest to some) to impose an illegal practice on EPO staff and EPO stakeholders



  6. Release: Early Letters and Documents About Financial Hoax Disguised as EPO 'Study'

    It was over a year ago that staff representation at the EPO expressed concerns about what would later enrage workers — seeing that based on unscientific fabrications the EPO would take away what had been promised to them



  7. IRC Proceedings: Sunday, November 29, 2020

    IRC logs for Sunday, November 29, 2020



  8. Managing IP: Puff Pieces Galore for the EPO's Dictatorship (Complete With Buzzwords and PR Stunts)

    By giving a platform to notorious patent trolls and ‘engaging’ with the EPO‘s dictator (whom only 3% of EPO staff trusts) Managing IP is sort of giving away its real agenda, which isn’t journalism but conducting or assisting misinformation campaigns



  9. Links 29/11/2020: Genode OS Framework 20.11, Linux 5.11 Kernel Changes, and Latest in KDE Itinerary

    Links for the day



  10. Sincere Thoughts About Outreachy

    Outreachy's role in the Free software community and inclusion in the FSF's High Priority Projects, as seen from the eyes of a female coder from a minority group; she used to work for the Free Software Foundation (FSF) and she expresses concerns about what Outreachy has become



  11. Free Software Under Tyranny of Codes of Conduct as the Western Equivalent of Blasphemy Law (Corporations as the New Religion/Sponsors as Deities)

    The free speech crisis in Free software communities has enabled expulsion of opinionated people whose opinions truly matter; in their place we now have companies that bomb people, sometimes even kidnapping children and sterilising women because nothing says “Ethics” like naked fascism and corporate domination everywhere



  12. Release: 4 More Documents and Letters About the Financial Siege at Europe's Second-Largest Institution

    Documents disputing the accuracy of the "hoax" from António Campinos and the Mercers



  13. One Year Ago: The Last EPO Demonstration Before COVID-19

    About a year ago staff of the EPO apparently had its last protest (in front of the Isar building) before staff got ‘herded’ into homes, where workers became more isolated and even illegally spied on



  14. [Meme] Unified Patent Court Agreement (UPCA) is an Attack on Europe and the European Businesses That Don't Do Litigation

    Litigation lawyers and patent zealots want to set Europe ablaze with legislation that they themselves crafted; thankfully, however, they face constitutional obstacles, no matter how many politicians they bamboozle and buy



  15. Reasons EPO Staff Decided to Go on Strike This Year (Before or Until Coronavirus Prevented It)

    An year-old letter from the Staff Union of the European Patent Office (SUEPO) to the President of the EPO; 7 reasons for going on strike are enumerated



  16. EPO Can Save Money by “Dropping Events Like the Inventor of the Year, Reducing the Number of Managers, Throwing Less Money at Consultants or Bringing the Boards of Appeal Back into Office Buildings.”

    Constructive suggestions from EPO staff, made just over a year ago and assembled into a letter to their EPO colleagues



  17. The Real Fate of the UPC 'Stunt' in Germany Will be Known Next Month (or Next Year) and There Are Substantial Constitutional Barriers in the Way

    Contrary to what Team UPC wants people to think, UPC(A) isn’t a “done deal” in Germany; they never actually addressed the substance of complaints and with help from Benoît Battistelli‘s friends in the Commission they’re just attempting a blatant coup



  18. Microsoft Removes Free Software From GitHub Again, This Time for Motion Picture Association (MPA)

    GitHub is proving to be more of a censorship site than a code-sharing site; with the GitHub takeover Microsoft became a 'censorship police' or force of occupation against its ideological competition; just weeks after the YouTube-DL debacle and further take-downs seeking to 'protect' broken DRM schemes (by banning code) we can see that Microsoft isn't defending developers at all; it's just protecting the interests of MPA, RIAA and other Biden circles from the interests of the general population, which sometimes circumvents perfectly circumventable 'DRM' schemes



  19. IRC Proceedings: Saturday, November 28, 2020

    IRC logs for Saturday, November 28, 2020



  20. Help Make Techrights (and Other Technology-Centric Sites) More Robust to Censorship by Setting Up More IPFS Nodes

    We’re trying to improve the site’s availability (ensuring it can never be offline) and make it more censorship-resistant; people who adopt IPFS can make that happen while tackling the “bloated Web” and “centralised Internet” issues — all at the same time



  21. Microsoft Loves Linux and Android Apps Running on Windows Instead of GNU/Linux and Android Devices

    Microsoft loves Linux, they say; but as Microsoft's former VP James Allchin put it: "If you're going to kill someone there isn't much reason to get all worked up about it and angry -- you just pull the trigger [...] We need to smile at Novell while we pull the trigger."



  22. Links 28/11/2020: RenderDoc 1.11, GNOME 40 Scrolling Horizontally

    Links for the day



  23. Nine Documents About the Financial Siege Against EPO Staff (Past, Present, and Future)

    Today we release dozens of pages of letters and documents (internal to Europe's second-largest institution); they all focus on the betrayal and skulduggery, crushing staff in spite of what was originally promised (and what workers actually signed up for)



  24. EPO Senior Management (Cabal) “Essentially Deaf to the Proposals From Staff Representatives.”

    Representatives of EPO staff feel like the management of the EPO is "deaf" and uncaring; there's hardly any meaningful progress (or none whatsoever) when it comes to truly honest dialogue with real participation



  25. EPO Management, Led by António Campinos, Attempted to Stifle or Prevent Staff From Being Surveyed

    Battistelli's cabal, which covers up a lot of fraud and corruption, is attempting to prevent the staff from expressing an opinion (for insiders and perhaps outsiders to assess) because things are really bad and autocratic measures are seen as necessary to keep the lid on issues/abuses



  26. The European Patent Office's Central Staff Committee: Office Cannot Recruit Fit-for-Purpose Patent Examiners Anymore

    One third of EPO recruits are 'locals' (Germans), 0.2% are Swiss, 1% Scandinavian; the EPO as an employer became unattractive and it's unable to attract the staff it needs (as was projected and planned when the EPC was agreed upon)



  27. IRC Proceedings: Friday, November 27, 2020

    IRC logs for Friday, November 27, 2020



  28. Links 27/11/2020: Jolla is 7, Diffoscope 162, MNT Reform Production

    Links for the day



  29. The Time Coronavirus Helped EPO Management Prevent Staff From Protesting and Going on Strike (March 26th)

    "In view of the spreading of the New Corona Virus, the planned General Assemblies have to be cancelled," the Staff Union of the European Patent Office (SUEPO) wrote in the wake of the crisis across Europe back in March (weeks ahead of a planned strike)



  30. Guarding Your Privacy With E2EE: Primer

    "As with all security, there is assumed risk no matter how careful you are. There are no security guarantees but that doesn't mean you shouldn't try."


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