Microsoft subsidiary makes $314.73bn profit and pays no tax in Ireland – despite registering there
- Reference: 1622745910
- News link: https://www.theregister.co.uk/2021/06/03/microsoft_subsidiary_ireland/
- Source link:
Registered in Dublin, Ireland, Microsoft Round Island One recorded $13.6bn in revenue for the 2020 financial year. That was up from $9.9bn a year earlier.
The British island territory, famous for its pink sands, is incidentally not round. Perhaps it's an in-joke among, er, residents.
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From 2019 to 2020, the Microsoft [2]subsidiary 's profit after tax increased from $9.93bn to $314.73bn "reflecting the gain made upon the liquidation of two subsidiaries," according to documents shared by [3]The Guardian .
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The Irish Times, which [6]published the story in May, said the companies sold by Microsoft Round Island One were Microsoft Luxembourg USA Mobile Sarl and MACS Holdings Ltd.
[7]US slaps tariffs on countries that hit Big Tech with digital services taxes ... then pauses them immediately
[8]BOFH : But we think the UK tax authorities would be VERY interested in how we used COVID support packages
[9]US Treasury wants to treat cryptocurrencies like cash – as in you need to report $10k+ transactions
[10]Take-home salary pay cut in 2021? Billionaire Michael Dell feels you, slices off most of own yearly pay
Although the Irish subsidiary paid dividends of $24.6bn, it did not pay tax to the Irish government.
The Guardian said the main purpose of Microsoft Round Island One was to collect licence fees for the use of copyrighted Microsoft software around the world. The financial statement stated the principal activity was the "holding of investments in group companies."
In a statement to the Guardian, a spokesperson for Microsoft said: "Microsoft has been operating and investing in Ireland for over 35 years and is a long time taxpayer, employer and contributor to the economy. Our organisational and tax structure reflects our complex global business. We are fully compliant with all local laws and regulations in the countries where we operate."
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The profit from the subsidiary is actually more than Microsoft Corp - the parent firm's - total revenue. In July last year, the Redmond giant said in its [12]annual results for 2020 that revenue was $143.0bn, up 14 per cent on the year before. Net income was $44.3bn, up 13 per cent.
The relationship between the Irish authorities, tax and mega tech corporations has at times been strained.
In February, the [13]European Commission published a summary of the grounds it intends to pursue in an appeal against a General Court of the European Union decision which ruled Apple had not received unlawful state aid from Ireland that had [14]allowed it to swerve nearly €13bn in back taxes. ®
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[1] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2YLlQ-aj05VXRpc@ehKRFIwAAAMc&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[2] https://core.cro.ie/e-commerce/company/381994
[3] https://www.theguardian.com/world/2021/jun/03/microsoft-irish-subsidiary-paid-zero-corporate-tax-on-220bn-profit-last-year
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44YLlQ-aj05VXRpc@ehKRFIwAAAMc&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
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[6] https://www.irishtimes.com/business/technology/irish-registered-subsidiary-of-microsoft-records-314bn-profit-1.4565525
[7] https://www.theregister.com/2021/06/03/us_digital_services_tax_tarrifs/
[8] https://www.theregister.com/2021/05/28/bofh_2021_episode_5/
[9] https://www.theregister.com/2021/05/21/cryptocurrency_us_treasury/
[10] https://www.theregister.com/2021/05/13/michael_dell_fy21_salary/
[11] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44YLlQ-aj05VXRpc@ehKRFIwAAAMc&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[12] https://www.theregister.com/2020/07/23/microsoft_q4_2020/
[13] https://www.theregister.com/2021/02/01/european_commission_outlines_its_appeal/
[14] https://www.theregister.com/2020/07/15/apple_13bn_irish_tax_ruling_overturned/
[15] https://whitepapers.theregister.com/
Re: shower themselves in gold with the governments blessing.
Be careful with that analogy.
Trump will want to join in.
Re: shower themselves in gold with the governments blessing.
IF Trump were as smart as he says he is, he would have.
Then they would have gone bankrupt...
Re: What's the correct word
Why does the word "theft" always come to mind ...?
Because it is closely related to what this really is: piracy.
But then ...
Who is at fault here?
Microsoft's Irish Round Island whatever or the Irish government's, who for some strange reason can happily forego the tax on a whooping (I assume US currency) $314.73bn.
The relationship between the Irish authorities, tax and mega tech corporations has at times been strained.
Hmm ...
Yes, obviously very strained.
Uncannily so.
There is a saying in Spanish speaking countries which basically translates thus:
It's not about the pig, it's about the one who feeds it.
Maybe the Irish authorities read ElReg:
Ní bhaineann sé leis an muc, baineann sé leis an té a bheathaíonn í.
O.
"The British island territory, famous for its pink sands, is incidentally not round. Perhaps it's an in-joke among, er, residents."
I live in Bermuda and this is the first time I've heard this reference.
Trickle-on economics
I'm sure they've created a bunch of well-paying jobs with these profits.
Microsoft is good at abusing boundaries...
Back in the day we used to refer to them as buffer overflows and such like.
Try mailing them at the registered address and see if you get an Invalid Page Fault.
Re: Microsoft is good at abusing boundaries...
Bermudan Screen Of Death
The Nagi of the Ferengi-Nazi States of America are masters at acquiring latinum and hiding it from Brunt and the Grand Nagus.
What's the correct word
Why does the word "theft" always come to mind when reading these kind's of articles ?
What alternative words could be used to sum up the kind of culture where the common man struggles to get by whilst corporations such as these shower themselves in gold with the governments blessing.
I am happy that companies become successful but this far outweighs requirements or achievements, this becomes pure greed, in the worse sense.