Microsoft’s Irish subsidiary had nearly $ 315 billion in profits last year, but the company has not paid a penny of corporate tax since then because it is registered in Bermuda for tax purposes, the Guardian writes.
The company doesn’t have a single registered employee, yet it had as much sales as three-quarters of Irish GDP. A company called Microsoft Round Island One handles license fees for Microsoft software around the world. The subsidiary is headquartered in Dublin, has no employees other than executives, and is taxed on the island of Bermuda. Or they would pay, but there you don’t have to pay corporate tax to companies.
The news about Microsoft’s results came just the week when the news came that leaders in major countries around the world could agree to take action against tax evasion practices by multinational giants.
Organizations fighting tax fraud and tricks have, according to the Guardian, called it beyond imagination, as Microsoft is acting with the powerful help of Ireland. The relationship between Microsoft and the Irish subsidiary has previously been investigated by the U.S. Senate.
A spokesman for the company has now said that Microsoft has been present in Ireland for 35 years, has invested a lot, has employees and pays taxes. At the same time, the company’s organizational and tax structure reflects the company’s global business complexity. But everywhere they follow local laws, they added.
Paul Monaghan, head of the Fair Tax Foundation for Cleaner Taxation, said Microsoft had not paid a single cent in Ireland despite paying $ 55 billion in dividends to shareholders.
It was recently revealed that although it brought in record revenue, Amazon did not pay a single cent of corporate tax in Europe.