Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

12/10/2012 (1 year ago)

Catholic Online (www.catholic.org)

Microsoft uses well-known loophole to funnel profits out of country.

Microsoft has managed to avoid paying Her Majesty's due on 1.7 billion per year in UK revenues by exploiting a tax loophole that allows the company to funnel money through Luxembourg. Microsoft is simply the latest in a series of major corporations caught using the loophole. Microsoft says the loophole is legal.

This graphic from the UK Daily Mail shows how Microsoft routes its profits to avoid taxation.

This graphic from the UK Daily Mail shows how Microsoft routes its profits to avoid taxation.

Highlights

By Catholic Online (NEWS CONSORTIUM)

Catholic Online (www.catholic.org)

12/10/2012 (1 year ago)

Published in Technology

Keywords: Microsoft, UK, taxes, evasion, Luxembourg


LONDON, ENGLAND (Catholic Online) - According to the Sunday Times, Microsoft has been funneling cash from the sales of Windows 8 out of the UK and through a series of transfers that lands the money in the Caribbean, beyond the reach of Her Majesty's Revenue and Customs agents.

The journey starts when someone in the UK purchases a Windows software product. The money is paid into an account in Luxembourg from whence it is transferred to Microsoft's European headquarters in Ireland. Ireland has about half the tax rate as the UK.

From Ireland, the money for dividends is sent along to Bermuda.

The past year along, her Majesty has been deprived of 159 million in revenues. And it's all apparently quite legal, for tax avoidance isn't the same as tax evasion.

However, this has raised the ire of many in the UK who believe the company should pay its share of revenues to Her Majesty, saying the money is enough to build a hospital or to help a great many people in need.

Microsoft isn't the first company to perform such gymnastics with their revenues. Amazon, Apple, Google, and even Starbucks have come under scrutiny for doing much the same thing.

Earlier this week, Starbucks, bowed by public pressure, agreed to pay the UK 20 million over the next two years.

For its part, Microsoft insists they have paid all applicable taxes and their methods are entirely legal. Microsoft does pay taxes in the UK, when the taxes are applicable. Indeed, if Microsoft is merely avoiding taxes, then a case can be made they are diligently doing what's required under their fiduciary responsibility as a corporation, which is to maximize shareholder profits.

As long as it's legal, of course.

There is no word yet on what Microsoft or Her Majesty plans to do, if anything, to resolve the current controversy.

---


Pope Francis: end world hunger through 'Prayer and Action'


2014 - Distributed by THE NEWS CONSORTIUM

Pope Francis Prayer Intentions for August 2014
Refugees:
That refugees, forced by violence to abandon their homes, may find a generous welcome and the protection of their rights.
Oceania: That Christians in Oceania may joyfully announce the faith to all the people of that region.



Comments


More Technology

MARK OF THE BEAST: Microchip implants in humans becoming more viable Watch

Image of Chips are already being used to manage farm animals. Farmers can track sheep, pigs and horses as they move through a gate, weigh them instantly and make sure they are eating properly.

By Catholic Online (NEWS CONSORTIUM)

A microchip implanted on human beings has chilling implications, conjuring up images of the "Mark of the Beast" as mentioned in the Book of revelations. Such an accessory would certainly be a boon for a totalitarian society - but there are scientists who say ... continue reading


Google, Internet search engine - branches off with DRONE DELIVERY Watch

Image of Google engineers coupled with experts on unmanned aerial vehicles, called UAVs, safely carried out more than 30 test flights this month.

By Catholic Online (NEWS CONSORTIUM)

The unquestioned leader of Internet search engines, Google, has branched off into a most unexpected venture. Google is now considering delivery with drone aircraft, running its first test flights earlier this month as part of "Project Wing," a secretive, ... continue reading


What are these mysterious objects found underneath Stonehenge? Watch

Image of Using underground radar and 3D imaging technology, a new study has revealed that there are numerous monuments underneath the famous Stonehenge.

By Catholic Online (NEWS CONSORTIUM)

England's iconic and mysterious Stonehenge has just revealed a new mystery, as a first-of-its-kind study suggests that 15 previously undiscovered or poorly understood monuments lie hidden under the ancient monument and the surrounding countryside. LOS ANGELES, CA ... continue reading


Forget the zombie apocalypse, the ROBOT APOCALYPSE is near! Watch

Image of In the future, robots will be connected through a kind of internet which will allow connected robots to gather and use information in everyday tasks.

By Catholic Online (NEWS CONSORTIUM)

A large scale computational system that learns from publicly available Internet resources-called Robo Brain-is currently downloading a processing about 1 billion images, 120,000 YouTube videos, and 100 million how-to documents and appliance manuals. This ... continue reading


You'll never believe what Amazon picked up for nearly $1 billion Watch

Image of Tech giant Amazon purchased the live-streaming gaming network Twitch for $970 million, beating out several rival competitors including Google.

By Catholic Online (NEWS CONSORTIUM)

Defeating tech rivals Google and Yahoo, Amazon purchased the live-streaming gaming network Twitch for $970 million in a move announced late on August 25 which is the largest deal in Amazon's 20-year history. LOS ANGELES, CA (Catholic Online) - The firm raised $20 ... continue reading


China bucks American tech giant Microsoft over fears of spying Watch

Image of China is creating its own operating system after blacklisting Windows 8 from government computers over fears that the American operating system could provide avenues for intelligence agencies.

By Catholic Online (NEWS CONSORTIUM)

China's state-controlled Xinhua News Agency announced that China is developing their own operating system for desktop computers and mobile devices, citing U.S. surveillance as one of the key factors. LOS ANGELES, CA (Catholic Online) - China intends the new ... continue reading


Robots with an internet of their own! This is the way of the future Watch

Image of In the future, robots will be connected through a kind of internet which will allow connected robots to gather and use information in everyday tasks.

By Catholic Online (NEWS CONSORTIUM)

A large scale computational system that learns from publicly available Internet resources-called Robo Brain-is currently downloading a processing about 1 billion images, 120,000 YouTube videos, and 100 million how-to documents and appliance manuals. This ... continue reading


A confident Ballmer leaves Microsoft 'completely' to run the Clippers Watch

Image of Steve Ballmer has left all positions of authority at Microsoft, leaving behind the tech giant to run the Los Angeles Clippers, for which Ballmer paid a record $2 billion.

By Catholic Online (NEWS CONSORTIUM)

Eight months after he ended his role as Microsoft CEO, Steve Ballmer resigned from Microsoft's board, a move that ends more than three decades of direct involvement in the world's largest software maker. LOS ANGELES, CA (Catholic Online) - The 58-year-old, who ... continue reading


Why did NASA turn the cameras off? Live feed from Space Station shows UFO, NASA cuts the feed Watch

Image of Is this evidence of a UFO? Or perhaps just venting gasses or debris from the ISS?

By Catholic Online (NEWS CONSORTIUM)

Fans of the International Space Station got an eyeful recently when an alleged UFO appeared on NASA's live feed from the station. Curiously, the feed was interrupted as soon as the object appeared fueling rumors that NASA is engaged in a cover-up. LOS ANGELES, CA ... continue reading


Have you been hacked? New report says millions of personal information has been stolen Watch

Image of Russian hackers recently gathered customer individuals from more than 420,000 websites.

By Catholic Online (NEWS CONSORTIUM)

Russian hackers gathered information from over 420,000 websites, both smaller sites and "household name" sites, in an attempt to gather passwords to send out spam. LOS ANGLES, CA (Catholic Online) - Hold Security, a Milwaukee-based firm, discovered the theft but ... continue reading


All Technology News

Newsletters

Newsletter Sign Up icon

Stay up to date with the latest news, information, and special offers

Daily Readings

Reading 1, First Corinthians 2:1-5
1 Now when I came to you, brothers, I did not come ... Read More

Psalm, Psalms 119:97, 98, 99, 100, 101, 102
97 How I love your Law! I ponder it all day ... Read More

Gospel, Luke 4:16-30
16 He came to Nazara, where he had been brought up, ... Read More

Saint of the Day

Saint of the Day for September 1st, 2014 Image

St. Giles, Abbot
September 1: St. Giles, Abbot (Patron of Physically Disabled) Feast day - ... Read More

Inform, Inspire & Ignite Logo

Find Catholic Online on Facebook and get updates right in your live feed.

Become a fan of Catholic Online on Facebook


Follow Catholic Online on Twitter and get News and Product updates.

Follow us on Twitter