Microsoft announced that it received a notice from the US Internal Revenue Service (IRS) that it owed $28.9 billion in additional taxes. The software giant included some important details on the subject in its statement to the US Securities and Exchange Commission (SEC).The debt in question is related to the taxation of Microsoft’s income in various countries and regions between 2004 and 2013. The US Internal Revenue Service’s audit focuses on “transfer pricing,” which focuses on how companies allocate profits and expenses among their operations in different geographies.
“We have paid 67 billion dollars in taxes since 2004”
The US Internal Revenue Service wants to collect $28.9 billion, as well as interest and penalties accrued since then. Microsoft, on the other hand, stated that the tax authorities did not take into account the $10 billion previously paid. The company will object to the additional tax debt issued to it and, if the situation requires, take the issue to court.
In its statement on the subject, Microsoft said, “We believe that we always comply with IRS rules and pay the taxes we are required to pay in full in the United States and around the world. As a company, we have paid more than $67 billion in taxes in the United States since 2004.” The software giant is preparing for an appeal process that will likely last several years.
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