Bonum Certa Men Certa

More Microsoft Debt, Legalised Tax Evasion, and Investment in the SCO Case

Eye



Summary: A look at Brad Smith's lobbying, a loan of $1.25 billion, and Microsoft's involvement in the SCO case against Linux is revisited

The last post finished with a word about Brad Smith's lobbying for Microsoft.



It was only weeks ago that Brad Smith was lobbying for legalisation that gives Microsoft a green light to tax evasion -- an issue which is now being discussed by apologists of Microsoft's bad practices (who met Brad Smith for dinner):

As we pointed out in today’s Morning Fizz, Jeff Reifman, a former Microsoft employee who is on a crusade to get Microsoft to pay royalty taxes on software licenses, took me task for not asking Microsoft VP Brad Smith about their—estimated $100 million a year—tax dodge. (Reifman’s website has a helpful fact sheet on the issue.)

Here’s the deal: Microsoft has a shop in Reno, Nevada where it issues its software licenses. Even though dividends from those licenses come back to Redmond, the licensing transactions are not captured by Washington State because the business is technically generated out of Nevada. (I talked at length today with bureaucrats in Olympia who confirmed the situation.)

[...]

By the way, I take issue with Reifman’s assertion that I was “charmed” or “rolled over” by Smith and the dinner.


Microsoft really needs to start paying tax. The company's existing debt deepens based on this new report, so citizens might never see a penny.

The Bank of New York Mellon Trust will be trustee of $1.25 billion in Microsoft convertible debt after the software company offered them to investors last week, Microsoft announced Friday (PDF – 106 pages).


Pogson wrote about this company's famous case of legalised (using Microsoft veterans in the government) tax evasion:

I would like the USA to apply RICO to what M$ does, too. RICO covers fraud such as false advertising and tax fraud. Many of the “get the fud” ads, the layers of partners and kickbacks, and $billions “invested in research” could be fraudulent. Could a business really investing billions in research actually produce a product as faulty as that other OS? I expect a lot fewer billions have been invested in GNU/Linux research for a much better result. Is the research of M$ legitimate, or a tax dodge? Around the world, M$ has been pursued for dodging taxes. I would not be surprised to find they do it “at home”. The last annual report said:
“During fiscal year 2008, we reached a settlement with the Internal Revenue Service (“IRS”) on its 2000-2003 examination. As a result, we reduced our unrecognized tax benefits by $4.8 billion and recognized a tax provision reduction of $1.2 billion. As a result of the 2000-2003 settlement and the related impact on subsequent years, we paid the IRS approximately $4.1 billion during fiscal year 2009.”


One can go further and discuss Microsoft's funding of SCO, which is a serious issue. "Microsoft wished to promote SCO and its pending lawsuit against IBM and the Linux operating system," confessed Larry Goldfarb, a key investor in SCO who was approached by Microsoft. "Microsoft did not want to be seen as attacking IBM or Linux," he added. SCO is now dead or at least dying, but the damage caused by Microsoft's investment in SCO will never be undone.

I, personally, would like to see SCO die in a fire for all the expense, FUD and general heartache they brought to the free and open source community, but there's probably not enough left of the company to burn.


Over at ZDNet (now featuring Vista 7 ads in all blog pages), pseudonym Paul Murphy is told: "Come on “Paul”, you need to step up someday and admit that you have been wrong all along about SCO and their scheme against Linux. You can do it, I know you can!"

Pseudonym Paul Murphy has been promoting SCO's case for many years and he still refuses to acknowledge that it was all in vain. Groklaw responds with a mention of Novell's role:

He continues to insult, and he predicts SCO, or a new owner of Novell, will surely succeed yet in fulfilling SCO's plot, in what he believes, if I've understood him, will be a legal Hail Mary pass to go down in history. The new FUD is his article, Suicide by Victory: More on SCO, in which he predicts gloom and doom for Linux because Novell won at the jury trial in Utah.


Groklaw also refers to this article which cites Rob Enderle (big SCO booster and Linux agitator). "The link is to Rob Enderle's old article," writes Groklaw. "His point is that litigation is a skill, and most CEO's don't have skill in that field."

Well, Microsoft has been claiming to 'embrace' "Open Source" while litigiously attacking "Open Source" [1, 2, 3, 4, 5, 6, 7] and clearly describing it as a competitor. SCO did something similar with Linux. That was probably before Microsoft approached SCO with cash. That's just how Microsoft operates.

Based on a new report, the judge who became famous partly for his role in convicting Microsoft is being tapped by Oracle in its case against Microsoft's ally SAP (which lobbied against Oracle and Sun last year). To quote part of the article: (also in [1, 2])

Oracle has brought in the big guns to assist in its intellectual-property lawsuit against rival applications vendor SAP, hiring attorney David Boies, well-known for his high-profile role prosecuting the U.S. government's landmark antitrust case against Microsoft.

[...]

The attorney's role in the Microsoft case, where he served as a special trial counsel for the U.S. Department of Justice, was just one highlight in a career many legal industry observers have called legendary.


Oracle has just been sued for overcharging the government, but that's another story. We hope to see Microsoft sued for the role it played in the SCO case, which happens to have hurt Oracle. Microsoft has a tradition of sending attack dogs or vultures to attack its competition. ⬆

Eagle

Recent Techrights' Posts

Intercontinental Brigading - Part XXXXII - Running One's Mouth
British Police told me "making a false complaint to police is a crime" in relation to Lozza
The Register MS: Turnover Fell by Over a Million Pounds (About 20%) in One Year, Administrative Expenses Rose by Almost Half a Million Pounds, The Register MS Operates at a Loss
This is not a (commercially) healthy publisher
 
At The Register MS the Net Liabilities Doubled in One Year, Tangible Assets Down About 35% in One Year
signed off in 2026
Another 20 Years of Exposing Corruption
We'll focus on carrying on what we do
EPO Budget and Finance Committee (in Very Recent Meeting) Increases Bribes to People Who Vote on Campinos Reappointment ("Cooperation Activities")
Buying 'elections' to protect the cocaine-stained regime in Europe's second-largest institution
Links 07/11/2026: London's SLAPP Industry Now Targets Kirkenes (Northern Norway) at the Behest of Corrupt Thieves in Russia and Microsoft’s 'Buyout' Offer Crashes Microsoft Systems
Links for the day
Links 07/11/2026: "The Moon is Waning Crescent", Homeworlds, and "Can't Handle The AVIF!"
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Friday, November 06, 2026
IRC logs for Friday, November 06, 2026
IBM Compels Workers - Even at Red Hat - to Become "Retired-ish"
Who needs RAs (layoffs, which have been rebranded as "buyouts" like pink slips are generous "gifts") when workers can have their butts kicked every day and WARN Act reporting thresholds are never approached?
Links 06/11/2026: "XBox Is Closer Than Ever to Being Sold Off" and "BuzzFeed Stock in Free Fall"
Links for the day
Gemini Links 06/11/2026: Dao and Dreams
Links for the day
20 Years of Techrights
Celebrating 2 decades of abuses of power being watched (and looking back at key changes)
Linux (and Linus Torvalds) Sleepwalking Into a Binance-Level Catastrophe With Slop 'Code'
Someone should ask Linus Torvalds or his boss (Linux Foundation) if they deem slop, which nobody audits, trustworthy enough to add to every computer out there running the Linux kernel
Vitaly Orlov Weaponises Deep Pockets to Leverage High Court of Justice in London for Censorship and Punishment of Critics
reproduced in full for more exposure and to make censorship harder
Intercontinental Brigading - Part XXXXI - What I Told British Police About Lozza the Same Month Garrett Was Preparing His First Nastygram From 'Hired Guns' Brett Wilson LLP
Lozza and Garrett
Outsourcing at IBM
Cheapening of the workforce is hardly a new problem
Links 06/11/2026: Slop "Companies Race to Lock Down Oil Clients" and Salon Shuts Down
Links for the day
Our Third Decade
Our anniversary is tonight at midnight
Freedom Is Not Free of Charge, Freedom Can be Very Expensive
Being someone's "slave" is the "default" when no resistance exists
Intercontinental Brigading - Part XXXX - Swatting by Proxy
Using imbeciles who lie to cops and then dox cops (and already have arrest record and court documents wherein they admit being stoned in front of the cops)
Intel Craters at Taxpayers' Expense (Bailouts for Failing Companies Simple Don't Work)
GOP, which did this, has lost many seats
Mass Layoffs at IBM, Also Outsourcing to India
What IBM does to itself it is doing to other entities as well
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, November 05, 2026
IRC logs for Thursday, November 05, 2026
During Strikes and Industrial Actions Lots of EPO Staff Organised Yesterday and Will Do the Same Next Week
There really needs to be a genuine election, not a reappointment
Gemini Links 06/11/2026: Hadestown and "Where Has the Electronics Shop Gone?"
Links for the day
Links 05/11/2026: Rule of Law Vanishing in Turkey, Joshua Wong Still Martyred by Chinese Regime
Links for the day
Gemini Links 05/11/2026: Classical Music, Politics, and Seeed Studio
Links for the day
Like Almost Every Slopfarm, UbuntuBuzz Seems to Have Thrown in the Towel
Linuxsecurity and Linuxiac (to some extent Linuxjournal) are still going, but for how much longer?
EPO 'Midterm' Elections Should Oust the Dictator
Tentatively a failure to secure another (unprecedented) reappointment before Christmas
Secret IBM Layoffs and Increase in PIPs (Silent Layoffs)
The media is failing to do its job
Links 05/11/2026: "Voice is Underutilized" and How Data Centres Lost the Midterm Elections
Links for the day
Intercontinental Brigading - Part XXXIX - Crime Numbers Regarding GGG (Americans) and Why Those Still Matter
Time does not undo the actions
Intercontinental Brigading - Part XXXVIII - Telling the Police About the Defamatory Blog Where Posts Targeted My Wife and I (From Across the Atlantic Ocean)
Two years ago we spoke to cops a lot
The Register MS is Losing Money Again, Based on The Register MS
Selling out didn't pay off for very long
There Are No "Layoffs" Anymore, Layoffs Got Rebranded
We're entering bizarre times when layoffs are said to be "down" (according to the regime that suffered a 'bloodbath' in the election) because companies quit using the term "layoffs"
Gemini Links 05/11/2026: Rivers of London, Soul Cakes, STMicroelectronics, and Slop
Links for the day
The Register MS Has Just Published Fake Article With "AI" 84 Times in the Page Because It Was Paid to Do This!
Astounding number of mentions of "AI" (84 in total)
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, November 04, 2026
IRC logs for Wednesday, November 04, 2026