Despite operating in Ireland and registering more profits than the value of the Portuguese annual GDP, the Microsoft affiliate was able to avoid making any contributions to the IRC due to its financial headquarters in Bermuda.
The news is spreading this Thursday British newspaper Patron This comes at a time when an agreement is expected between the major world powers to reform the international tax system to ensure that large multinational corporations pay more taxes.
Accordingly Patron, The Microsoft Round Island One – Microsoft subsidiary that had access to documentation invested in the Company’s Irish Business Register Software Worldwide, Microsoft reported $ 315 billion in profit for the 12 months ended June 2020, valued at approximately 26 260 billion.
Despite this huge value, the company was able to avoid paying taxes, which was 30% more than the value of Portuguese GDP. On the one hand, it has its address in the offices of Mathewson, a law firm in central Dublin, Ireland. On the other hand, the company declares itself to be a tax resident in Bermuda, a region where corporate profits are not taxed.
“As the company is a tax resident in Bermuda, it does not levy any tax on its profits,” Microsoft Round Island One itself said in a statement to Irish authorities. Patron.
The way in which large multinational corporations are taking advantage of the existence of an extremely liberal tax system to avoid paying taxes in different regions is gaining more attention from the authorities in different countries. The U.S. Senate has already investigated a specific case of this Microsoft subsidiary as an example of tax evasion by large companies.
Currently, the OECD is coordinating and discussing with the major world powers the reform of the tax system applicable to multinational companies. This Friday and Saturday the finance ministers of the seven most developed countries (G7) will try to move forward with this initiative.
One of the ideas on the list is to impose a minimum IRC amount that removes incentives for companies to relocate their headquarters to other areas, in order to actually pay lower taxes where they operate. Changes are also being considered in the way taxes are levied on the world’s largest companies.
It is hoped that the outcome of this discussion will already be presented at the G20 meeting in July.