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

Bluetooth and Wi-Fi on Gym Equipment Can Endanger Several Parties
Joy oh joy! Give us more "smart" things
Microsoft Silent Layoffs This Month (PIPs and More "Buyouts", Driving Out the Workforce), According to Insiders
They know it's happening because they see it and fellow workers talk about it, even if the media keeps mum
Omarchy is Already Dying
Same as the life cycle of slopfarms
A Vortex of Beacons (or "Bluetooth Everywhere" Vision)
If someone (or someones) calls you paranoid for taking about "beacon"-like functionality, there will be no lack of authoritative citations (e.g. Web links) they can be provided to prove them wrong
 
What I Learned in London
some ministers still help us in our fight for press freedom in the UK
WordPress is Bloatware and Bloated Software Guarantees Security Incidents
This site turns 20 in about 11 or 12 weeks from now and it was never cracked, not even when it ran WordPress
Too Many Chiefs (or Chefs) at IBM, They Don't Know How to Run a Company (With a 100+ Year or Century-Old Brand Recognition Advantage)
It seems like a consensus opinion; some line managers or middle managers are too selfish or self-deceiving
Clacton's Election Was a 'Show Election'
At least some people squeezed out some "free press" out of this charade [...] That the media kept boosting parodies as the alternative/s to the bigot is a topic we wrote about a great deal over the past 3 weeks
Windows is Burning
Windows is the "burning platform" of the year
Gemini Links 15/08/2026: Stress, Jetlag, and GPU Hype (Waste of Energy for Amusement, Fake 'Currencies', and Now for Mass Plagiarism)
Links for the day
Links 15/08/2026: XBox Rotting Further, "France’s Top Court Strikes Down Ban on Social Media for Children"
Links for the day
SLAPP Censorship - Part 150 Out of 200: Always Independently Verify What People Claim to Be (or Find Yourself in a Jason Arday-Type Moment/Dilemma)
I'm not a cardiologist and Garrett was never a security expert
Links 15/08/2026: "There Is No A.I." (Slop Plagiarism Isn't Intelligence) and Its "Impact on the Environment Is Absolutely Horrifying"
Links for the day
Gemini Links 15/08/2026: Gratitudes, "Microflier" Drones, and Literate Programming
Links for the day
IBM's PIPs and RAs (Layoffs) Going on, Interns as 'Scabs'
It seems like a consensus (also in Reddit, we took a quick look)
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Friday, August 14, 2026
IRC logs for Friday, August 14, 2026
Gemini Links 14/08/2026: Slower Internet, Logging Off Made Easy, and Human Code
Links for the day
Links 14/08/2026: "Mystery of Dark Oxygen", People Despise Slop, and Backlash Grows Against Fake Currencies (Energy-Wasting Scam Like Slop)
Links for the day
Free Publicity
They say there's no such thing as "bad press" or that every publicity is good publicity, sometimes free publicity
Farage's fears, media hijacked by-election, what really happened in Clacton
Reprinted with permission from Daniel Pocock
It's Friday. A Ton of People Departing From IBM and Red Hat.
A mere subset of people who announce this in public at Microsoft's LinkedIn
GNU/Linux and ChromeOS Beyond 11%
Combined with ChromeOS, it's already past and beyond 11%
Chatbots/LLMs Are the Next "Clown Computing", Pure Hype, a Serious Mistake
Programs that scan text and emit something similar (but full of errors)
Links 14/08/2026: Slop 'Music' Causing Problems, Slop Data Centre Contractor Unpaid (Massive Debt), and The Cyber Show Says We're "Colonised By Wankers"
Links for the day
Fake Growth of Social Control Media is Misleading
nowadays people look for alternatives - ones not controlled by MElon, CPC, and Kapo-Berg
statCounter: Windows Down to All-Time Low of 25%, Android Leads the Pack, GNU/Linux About to Leapfrog Apple, Overtaking MacOS
The situation was very different in past years
Microsoft's Mass Layoffs (Including 'Voluntary' Secret Layoffs) Take Their Toll on Seattle
How much longer can they hide their crises?
Planet Fedora ("Fedora People") is Just IBM Staff, Former IBM Staff, and LLM Slop
this is what Fedora boils down to now
Explanation of What Will Happen to Red Hat (and Other Acquired Companies) After August
In short, a lot will be scuttled; history shows it happens over and over again
SLAPP Censorship - Part 149 Out of 200: It Took a Long Time to Show What Jason Arday (at Cambridge) and Harvey Weinstein (in Hollywood) Really Were
Really bad when society endures abuse because the abusers silence their exposers
Gemini Links 14/08/2026: 32-bit RISC-V and BlackBerry
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, August 13, 2026
IRC logs for Thursday, August 13, 2026
'Voluntary' Layoffs (a Form of Silent Layoffs): Microsoft Global Voluntary Separation Agreement (GVSA) in August 2026 and September 2026
Today and yesterday
Microsoft Sees Windows on Fire, Pours Gasoline Over It
The latest move from Microsoft defies logic
Racing Towards "Woman Zero"
They don't seem to value women
The Legacy of Gerstner (Rapid Destruction) Continues at IBM
They say IBM never recovered from Gerstner, who instead of saving the companies (IBM and others he claims credit for) set up a collision course of rapid shrinkage
Counters in Clacton Commence in 3 Hours at Clacton Leisure Centre
Even a few hundreds of votes for Pocock would be considered a great success
Swiss army to attack 2,900 domain name owners? Cult of ETH Zurich & Debian
Reprinted with permission from Daniel Pocock
IBM's Bluewashing of Confluent Carries on, More Layoffs Coming, Same Likely Applicable to Red Hat
September 30 is a day before this next phase of bluewashing at Red Hat
Headlines About Microsoft and Ransomware, But They're "SPONSORED FEATURES" at The Register MS
The Register MS habitually publishes LLM slop too
Links 13/08/2026: K-pop Suicide Due to Social Control Media, Legal Problems for Facebook Over Safety
Links for the day
'Cancel Culture' Isn't About Empathy, It's About Making Good People Homeless
Seeing what they did to RMS, remember that those "concern trolls" are about everything other than ethics and morals
Daniel Pocock in The Nerve
Lots of publicity owning to the enrollment
Why Support Daniel Pocock
Our readers who come from IBM and the EPO are certainly familiar with the tactics of censorship and what that sort of censorship leads to
SLAPP Censorship - Part 148 Out of 200: The Manosphere
Those people don't just threaten our national sovereignty, press, democracy etc. They also endanger women everywhere.
Gemini Links 13/08/2026: Health, Partial Eclipse Sketches, and Guilelessness
Links for the day
GNU/Linux Reaches 10% "Market Share" in statCounter
As of this morning
15% of IBM Marked for Potential Termination, PIPs are the "New Layoffs" (or RAs) at IBM
IBM is a dying company, but it does not want the press to say this or for people to understand that
Links 13/08/2026: "The Rise of the Measles-Industrial Complex" and Spotify Curbs Slop
Links for the day
Daniel Pocock on Australia's 9News (Nine Entertainment)
This gives visibility to software and technology issues
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, August 12, 2026
IRC logs for Wednesday, August 12, 2026