Bonum Certa Men Certa

Microsoft Illegally Evades Billions of Dollars in Tax, Says IRS

Summary: The criminal enterprise known as Microsoft finds itself embarrassingly exposed in the courtroom, for the IRS belatedly (decades too late) targets the company in an effort to tackle massive tax evasions

AT the end of last year we wrote about the IRS setting its sight on Microsoft, in spite of Microsoft's influence in the United States government. Microsoft then attacked the IRS using its lawyers, for merely investigating Microsoft (i.e. doing its job), thus wasting taxpayers money in the courts. Can anyone not see the sheer arrogance of Microsoft? Having already been caught engaging in serious financial fraud (reported to the authorities by an insider) and despite being notorious for taxation/tax violations, Microsoft thinks it has moral ground and believes it can sue the IRS for merely investigating a criminal. Criminal companies with the "God complex" apparently believe that they don't need to pay tax (because they are very politically-connected) and if you say that they do, they threaten you and bully you. It's a form of SLAPP (strategic lawsuit against public participation). Microsoft already loses billions of dollars and it sued the IRS for alleging that Microsoft owes billions of dollars to US citizens (easily provable).



This new article from The Register, based on legal documents, reveals the latest in this saga:

The ongoing squabble between Microsoft and the US Internal Revenue Service is heading to court, beginning with a hearing to take place in a Seattle federal court on Tuesday.

The case is gearing up to become one of the largest-ever legal battles between tax authorities and a US corporation over the practice of shifting assets to overseas subsidiaries as a way of avoiding US tax.

The IRS has alleged that deals Microsoft struck with subsidiaries in Bermuda and Puerto Rico between the years of 2004 and 2009 have potentially cost the US Treasury billions in tax revenue. But Redmond thinks the top tax agency's snooping has gone on long enough and it should either produce a hard figure or drop the whole matter.

Microsoft also claims the IRS acted improperly when it hired two outside law firms to help it in its investigation, which the software giant describes as improperly delegating a government function to a private firm.

Microsoft has filed two Freedom of Information Act (FOIA) requests to see documents exchanged between the IRS and the law firms it contracted, including Quinn Emanuel Urquhart & Sullivan and Boies Schiller & Flexner. The IRS has provided some such documents but Microsoft thinks it should be compelled to produce more.


Even if Microsoft goes bankrupt (it suffers losses already), people like Bill Gates, who became rich owing to the company's criminal activities, should be able to (if not forced to) pay what was looted from the public. More of the corporate media should have the courage to cover the above news, but seeing how Microsoft uses SLAPP against the messengers, maybe the media chooses to stay silence and let only official documents (buried behind paywalls) speak.

"We've got to put a lot of money into changing behavior."

--Bill Gates

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