FILE – The Microsoft logodesign is envisioned at the Mobile World Congress 2023 in Barcelona, Spain, on March 2,2023 The Internal Revenue Service states Microsoft owes the U.S. Treasury $28.9 billion in back taxes, plus charges and interest, the business exposed Wednesday, Oct. 11, in a securities filing. (AP Photo/Joan Mateu Parra, File)
SAN FRANCISCO (AP) — The Internal Revenue Service states Microsoft owes the U.S. Treasury $28.9 billion in back taxes, plus charges and interest, the business exposed Wednesday in a securities filing.
That figure, which Microsoft conflicts, stems from a long-running IRS probe into how Microsoft assigned its revenues amongst nations and jurisdictions in the years 2004 to2013 Critics of that practice, understood as transfer prices, argue that business regularly usage it to decrease their tax problem by reporting lower revenues in high-tax nations and greater earnings in lower-tax jurisdictions.
Microsoft, which is based in Redmond, Washington, stated it followed IRS guidelines and will appeal the choice within the company, a procedure anticipated to take numerous years. The business’s shares dropped alittle in aftermarket trading.
The IRS started an audit of Micro