Bonum Certa Men Certa

IRS Reveals That Microsoft Effectively Stole Tens of Billions of Dollars of Public Money Using a Network of Tax Havens

"The taxpayers are sending congressmen on expensive trips abroad. It might be worth it except they keep coming back."

--Will Rogers



Summary: Microsoft's long history of tax evasion is finally taking some toll as the US tax authority, the IRS, is going after Microsoft and unravels its international network (or syndicate) of tax avoidance

WE find it amazing (not just interesting) to see a branch of the US government, the IRS, going after 'big fish' (for a change). These bodies or branches of government are usually corrupted enough to overlook abuses of powerful entities that are closely connected to the government and thus pose a threat to the career of anyone 'daring' to expose and litigate. Remember what happened to the judge who threatened to split Microsoft?



"Remember what happened to the judge who threatened to split Microsoft?"Microsoft is not an ordinary company. Remember that Microsoft actually threatened the IRS [1, 2] for merely 'daring' to look into (and potentially expose) organised tax evasion by these arrogant thugs at Microsoft. Microsoft's avoidance of taxes is a long-explored subject at Techrights, so we are delighted to see the IRS finally tackling the issue. It's well overdue and belated (by several decades). Never forget that Microsoft literally threatened the IRS for merely doing its job, which was to expose tax evasion. The poor little IRS thought it was big enough to take on Microsoft (like DOJ taking on Wall Street), whereupon Microsoft bullied it with deterrence lawsuits. Interestingly enough, please note that the same legal firm which lobbies alongside Microsoft on the patent front is the same one threatening to sue me over EPO coverage. The EPO started sending threatening legal letters only after (and only regarding) EPO abuses implicating Microsoft. How will Microsoft respond to the IRS other than threaten the IRS with lawsuits?

"Microsoft’s avoidance of taxes is a long-explored subject at Techrights, so we are delighted to see the IRS finally tackling the issue."Matt Day's detailed article about it (in the Seattle Times) says: "Court documents in a case between Microsoft and the IRS provide a detailed look at how the company, like other multinational corporations, has created a complex structure that allows it to minimize its tax bill."

It is worth noting that the Seattle Times was paid by Bill Gates and it showed, so this article may be 'risky' for their financial lifeline. We have already shown how sites which receive Bill Gates' money shortly thereafter remove criticism of Microsoft (even retrospectively!).

There's a spurious part about "other multinational corporations". Saying that a lot of other companies (not under IRS probe) evade tax is a Microsoft-serving evasion tactic. Microsoft is, in our experience, more criminal and corrupt than counterparts. We have provided ample evidence of this over the years.

"Remember when a whistleblower exposed Microsoft corruption (financial fraud to be precise) and Microsoft paid him $4 million to shut up and then scuttled the investigation with the SEC?"What the IRS says about Microsoft isn't a shocking revelation but perhaps the first time (in recent history) that those in positions of (relatively) high power are "brave" enough to say the truth. Remember when a whistleblower exposed Microsoft corruption (financial fraud to be precise) and Microsoft paid him $4 million to shut up and then scuttled the investigation with the SEC? That was back in the late 90s. Microsoft's financial situation isn't what it seems and the company does not operate like it publicly claims. Microsoft has been mostly a piggy-bank for Bill Gates, who himself does not pay tax. Bill Gates is avoiding billions in taxes by pretending he runs a charity. Mark Zuckerberg is to latest to imitate this nasty PR ploy and Microsoft was perhaps one of the earliest software giants (if not the pioneer) when it comes to massive-scale tax evasion. Many software companies just thought, "hey, we can do this too."

"From 2001 to 2006," Day explains, "Microsoft completed a series of intracompany deals that, in exchange for upfront payments, shifted the rights to software code and other assets developed largely in the U.S., to subsidiaries in Bermuda, Ireland, Singapore and Puerto Rico.

"When Bill Gates bribes large newspapers they just tend to focus on tax avoidance by companies other than Microsoft.""Those deals reduced Microsoft’s cumulative tax bill in future years by tens of billions of dollars, according to court documents and an analysis of the company’s filings."

Read it again: "tens of billions of dollars" (and the IRS usually just cracks down on businesses over a few thousands of dollars).

Singapore, as it turns out, continues to enrich itself (by "itself" we mean few corrupt politicians and businessmen) by facilitating such tax evasion, much like Switzerland (Singapore seems to have become the Zurich of Asia, and that's not meant to be a compliment).

Day has posted some short summaries of his article in Twitter, noting that "on taxes, Microsoft behaves like much of the rest of big Corporate America: they’ve tried to limit the cash they send to governments."

"Why did it take two decades for the IRS to do something about it?"No, as explained above, Microsoft is quite unique. When Bill Gates bribes large newspapers they just tend to focus on tax avoidance by companies other than Microsoft. We have given examples of this, e.g. The Guardian.

Day says that "Microsoft spent 20 years building a network of subsidiaries that, among other things, avoided a lot of taxes."

Why did it take two decades for the IRS to do something about it? Could it be Microsoft's influence in the US government? If it wasn't a government-embedded company like Microsoft, one would call it organised crime and it would be front page news (many tens of billions of dollars in tax evasion).

"If it wasn’t a government-embedded company like Microsoft, one would call it organised crime and it would be front page news (many tens of billions of dollars in tax evasion)."Day says that "Microsoft officially sells most products from Ireland, Puerto Rico or Singapore. In the U.S., most sales start in Nevada (few biz taxes)."

Yes, and guess who's facilitating this. It is well documented, as some people have shown for many years, that Microsoft put former executives as moles inside the local government, perhaps in order to facilitate tax-related crime and send everything from Washington to Reno. We named the people involved about half a decade ago. Where was the IRS all this time? It couldn't defend itself by saying that it hadn't noticed. People from inside Microsoft complained about this.

Day says: "Each of Microsoft’s global hubs is designed to place some profit in Bermuda, the island tax haven. It’s unclear how much."

"We named the people involved about half a decade ago."Well, it's time to investigate. This is a big case implicating "big" people and involving a lot of money. Don't expect any arrests though. Rich people rarely go to prison.

Day adds: "That structure, created ~2001-2006, saved Microsoft tens of billions of dollars in taxes. Likely 100s of mill saved in Washington state."

According to a campaigner from Microsoft -- one who left Microsoft and then became a vocal critic of Microsoft's tax evasion (he even created a whole Web site about it) -- we're talking about well over a billion, not "100s of mill", 'saved' (means evaded) in Washington state. Half a decade ago it was estimated at well over a billion, so maybe it's already $2 billion.

"It's a massive international racket and we hope that the IRS will get to the bottom of it rather than spend a lot of time going after "easy" cases and crushing relatively poor people."As we have said here before, based on over a decade of research, Microsoft is not an ordinary company. It's more like a clique of power-hungry people. Microsoft continues to conveniently masquerade as "software company" when in reality it has patent trolls (satellites) bullying practicing firms and funneling untold amounts of money to offshore divisions and subsidiaries such as "licensing" (e.g. Android licensing). It's a massive international racket and we hope that the IRS will get to the bottom of it rather than spend a lot of time going after "easy" cases and crushing relatively poor people.

Apple, to its 'credit' [pun intended], seems to have learned Microsoft's dirty tricks and a new article from the financial press suggests that Apple too is in trouble over taxes, at least in Europe. Well, are governments around the world strong enough to tackle the Big Evaders? As in Big Business? Whose side are they on? Let's see if we have a real functioning democracy.

The financial crisis of 2008 showed whose side governments tend to be on when they not only failed to arrest a lot of (likely) guilty bankers but actually took taxpayers' money and gave it out to these bankers as a "bailout" gift.

Recent Techrights' Posts

Journalists Should be Ashamed for Parroting False Claims From IBM Management About "Quantum Computing", Say IBM Insiders Who Work on "Quantum Computing"
IBM is a buzzwords vendor. International Buzzwords Machines.
Exposing Corruption Using a Highly Resilient Platform
Growing levels of trust, based on our track record, help us attract whistleblowers
FOMO (Fear Of Missing Out) Has Weakened If Not Ruined What's Left of Big Media
Many things that have existed for decades are now being rebranded as "AI"
SLAPP Censorship - Part 97 Out of 200: Garrett in Hiding (From the Simple Observable Fact He's Closely Connected to the Microsofter Who Strangles Women, Tells Women to Kill Themselves, and Worse)
They use one another; they are coordinating this via the SLAPP industry in another continent
Rust Outsources its Financing (or Financial Control) to Microsoft
How long before the third "E"?
IBM's Shares Fell Nearly 13% in One Day (Including After Hours)
its main product is false promises
European Patent Office (EPO) Series: "Operation Influencer"
Costa's political career was far from finished
 
Links 04/06/2026: Self-hosting Remotely and GemText Emphasis
Links for the day
Links 04/06/2026: Ukraine’s Daily Moment of Silence and Uber Lays off 23% of HR
Links for the day
SLAPP Censorship - Part 98 Out of 200: Microsoft Threatening Real Security Researcher With Criminal Investigation for Talking About Microsoft's Bug Doors/Back Doors
The crime should be the back doors (deliberate attack on every user's data protection), not talking about those back doors
Microsoft Would Get Away Even With Pedophilia
"Microsoft should never be above the law"
Free Software is Nourishment to Software Users, Unlike Proprietary Software
Quit treating "mere users" of software "like animals"
The "Peanut Gallery" of GAFAM Has Infiltrated Free Software Projects or Disrupts Free Software Communities
They contribute nearly nothing and do substantial damage; they're freeloaders who attack the most productive members of projects
Coding is Not a Quantity Game (It Never Was!)
"less is more"
Mass Layoffs Expected at Microsoft in July 2026
They're preparing more "lists" of people
Reflection on EPO Leadership That Harbours Cocaine, IBM Leadership That Pumps-and-Dumps the Shares, and More
ManCity replaced Manuel Pellegrini with a more famous manager it didn't envision winning 20 titles in 10 years (it could only hope) [...] Team-building is something that "Pep" seemed to be good at, as was Jürgen Klopp
Pump and Dump by IBM Insider Traders: Nickle LaMoreaux, Gary Cohn, James Kavanaugh, Arvind Krishna, Robert Thomas, and Others
the shares are already collapsing
Links 04/06/2026: Microsoft Threatening Security Researcher for Naming Back Doors in BitLocker, "Demand is Booming for" Old Tech
Links for the day
Gemini Links 04/06/2026: "Word Vomit", Slop", and Moving to Gopher/Gemini
Links for the day
"Format Sovereignty" Can Only be Accomplished With LaTeX or OpenDocument Format (ODF) or Vendor-Neutral Standards for Editable Documents
Microsoft is, in effect, above the law
The Cyber Show on the Importance of Software Freedom and Why GNU/Linux Could Not be Stopped
an excellent article
Drew DeVault Can Still Redeem His Reputation. Revisiting His Attacks (and Attack Site) on Richard Stallman Might be a Good Start.
DeVault has openly apologised (this past spring)
The Register MS is Publishing Paid SPAM; Some of It is Designed to Prop Up the "AI" Pyramid Scheme
The Register MS participates in scams
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, June 03, 2026
IRC logs for Wednesday, June 03, 2026
GNU/Linux Usage Rising Among Gamers, But "Hardware Survey Data Not Available."
Not anymore, not for now anyway
Jumping Up and Down on the Shoulders of Giants, Never Talking About What Bill Gates Did
We're back to 2019
Despite LLM Slop or Chatbots, Our Traffic Has Doubled Since We Moved Everything to the UK (in 2023)
The demise of news sites was not what we thought it would be
Software Developers Attacked by Plagiarism Engines Because These Developers Can Teach People How to Exercise Control, Not Outsource to Monopolies of Slop and Back Doors
"Universities should be telling industry what is to be done next, not the other way about. Present education policy has the tail wagging the dog."
Quantum Quantum Quantum Quantum (Pump, Then Dump)
What has IBM become?
Communicating With Freedom - Part I - Developing “Quibble” and Improving GNU LibreJS in the Process
In the next part we shall examine where things currently stand
Quantum Computers Are "All the Rage" (35 Years Ago, What IBM Promises This Year is What People Promised When the CEO Was in His 20s)
"Quantum" hype is high on the agenda
How IBM Removes 15% of Its Staff Without Even Checking Performance of Staff (or Calling That "Layoffs")
Performance Improvement Plan (PIP) as veiled RAs
Links 03/06/2026: Mobile Systems, Openwashing, and New Antenna
Links for the day
Canonical as Reseller of Back Doors in "Ubuntu" Clothing
Microsoft is the antithesis of security and autonomy
Romania Used to be Windows Stronghold, But That's No Longer the Case
Windows was once upon a time so ubiquitous that institutions didn't bother supporting anything except it
KDE Has Long Used Dragons, and Dragons Come From Hatched Eggs
That Microsoft Lunduke tries to paint this as some "trans agenda" thing says a lot about Microsoft Lunduke and his COVID-19-damaged brain
IBM Announces 5 Billion Dollars "Invested" in "AI", in "Security", and 10 Billion Dollars for "Quantum", But IBM Does Not Have This Kind of Money (It's Fake News to Manipulate the Share Price)
IBM has fast-growing debt and liabilities, it does not intend to invest this kind of money, it's a smokescreen and false promises timed to alleviate the sagging share price (52-week low)
When Science and Religion Are on the Same Side, United Against Slop Pushers
The "Mathematics Pope" (sometimes known as "Pope Pi") brought together science and religion, united against technofascists who are mostly college drop-outs who abhor women
Links 03/06/2026: "In Turkey, Criticizing a Corporation Can Land You in Jail" and "Court Bans X Account of Turkey's Oldest Newspaper"
Links for the day
Web Censorship Benefits the Corrupt and the Criminal
More so when corrupt politicians are in charge
Have a "Lifetime" Without Microsoft
The online rage over this is still ongoing
Internet Archive’s Wayback Machine Undoing Censorship of Corporate Wrongdoing
That won't go away anymore
"For Entertainment Purposes Only" But Everyone Must Adopt It for Work and Governance, Say Anti-Scientific Technocrats
"The present mentality around "AI" is like driving to the gym to use a treadmill - it's walking for people who hate fresh air and beautiful changing scenery."
Gemini Links 03/06/2026: Ian Murdock's Ex-wife Footprint in Debian and Alhena 5.6.1 Released
Links for the day
Irish Company statCounter Recognises It Overestimated Microsoft Windows' Market Share in Ireland
it seems like the Irish people are gradually moving away from Windows
Corporate Media Participates in the Lie That Mass Layoffs at GitLab and Loss of Geographic Footprint in More Than a Third of Countries is "AI" and Thus "Success Story"
There's no way to spin this as positive news
Slop Prompting is Not a Coding Skill and Slop Deserves Shunning
Red Hat is hypocritically shunning the very same thing it keeps promoting
IBM colleagues "handed out a PIP and then right after the end date they are gone"
Some go into early 'retirement' to save face
SLAPP Censorship - Part 96 Out of 200: When You Receive Death Threats From Anonymous Sockpuppets/Burner Accounts Connected to People Who Strangle Women and Tell Women to Kill Themselves
Women are not objects and my wife ought not be mentioned in "threats to kill" (how cops have described this)
European Patent Office (EPO) Series: A Tale of Two Antónios - Introducing the Other António
António Costa
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, June 02, 2026
IRC logs for Tuesday, June 02, 2026
Advertisements as Articles in The Register MS
Trust in media
Social Control Media Does Not Improve Reach, It Wastes a Lot of Time
many people still think that no presence in Social Control Media necessarily means invisibility
Links 02/06/2026: New York Times Debunks "Hey Hi (AI) Layoffs" (Excuse, False Narrative), Sheinbaum Publicly Bemoans US Meddling
Links for the day
Despite Mass Layoffs and Culls Dubbed "Buyouts" Google's Debt Doubled in a Year and It's Desperate for Money (to Pay Salaries and Bills)
Google and GAFAM in general have mass layoffs because they have no clear route towards profitability
Gemini Links 02/06/2026: Arch Linux WriterDeck and Papyrix Reader
Links for the day
Bloggers Still Have Considerable Impact on This Planet
Nowadays, in academia almost anywhere in the world, there's growing expectation that lecturers will spend not much of the time doing research or even teaching
The Firing Line Against Techrights
Tomorrow we'll tell a story about campaigns to intimidate us with death threats
The Cyber Show on the Fight Against Technofascism
It's very long (all combined), but nevertheless refreshing
What Efforts to Cancel Richard Stallman Ought to Teach Us About the Media, Including Very Large British Publishers
Richard Stallman is like a modern-age Alfred Dreyfus
After Threats to Greenland Northern Europe Seems to be Moving Away From Microsoft Windows Even Faster
The facts on the ground are, more people/businesses/institutions "get the message"
Claim of 500+ IBM Red Hat Layoffs With Termination Next Month
IBM is doing great... at hiding internal affairs
Slop Did Not Rewire Democracy, It's a Giant Flop
we already see slop giants accepting they'll never make money
The Register MS Embeds in Articles "SPONSORED LINKS" That Link to "AI" Ponzi Scheme/Scam
The circular financing giants are allocating budget for the spam, as do the banks (lenders)
Many Countries Divest From Microsoft
new numbers at statCounter today
European Patent Office (EPO) Series: A Tale of Two Antónios - On the Campaign Trail in Brussels
Part 1
SEO is an Acronym That Stands for Slop Engine Orientation
The Web changed a lot when Web directories, portals, and then social control media gained popularity
IRC Network OFTC is Shedding Off Servers
Down to 17
Julian Assange's Counsel Jennifer Robinson Has Just Won an Award
Jennifer Robinson is relatively young
Schweizerische Bundesbahnen (Swiss Federal Railways) and Richard Stallman
It seems like RMS is receiving endorsement or at least belated recognition from very high-profile institutions
Almost 30 Years After Rob Malda Made Slashdot It Still Inspires New Implementations
Maybe the issue isn't Slash per se, just the complexity of it (which SoylentNews complained about in the past)
Links 02/06/2026: "The Infosec Phrasebook", 'Perfect Randomness' and "Leaving the Tech World Professionally"
Links for the day
Faking Demand for Slop: Google's Search Prompt Becomes Slop Prompt (Bait, Switch, Fake Usage)
If there is no consent, then it's unsustainable
When You Give People (or Companies) Money to Buy Your Own Products and Then Call It "Revenue"
A lot of modern "economics" don't benefit ordinary people (all they get is high inflation rates); they're devaluing money by faking economic activity
IBM is Self-Detonating, the Cheeto-Infused Rally is Another Con by Don
pump and dump
"Quantum" as the "Next Big" Bubble
disappointing and delivering nothing
Links 02/06/2026: "$1.5 Trillion Defense Budget Benefits Billionaire Cheeto Mussolini Supporters", US "Plans to Criminalize Sleeping Outside"
Links for the day
Gemini Links 02/06/2026: Organising Oneself and Killing Off Distracting "Notifications"
Links for the day
SLAPP Censorship - Part 95 Out of 200: The Growing Risk of Tolerating Men Who Abuse and Physically Assault Women
FOSS should not be a "safe harbour" or "hideout" for criminals
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, June 01, 2026
IRC logs for Monday, June 01, 2026