I’m not a tax law expert. I’m especially not a U.S. Law tax expert, Canadian Tax law I know a bit about. However the people over at Microsofttaxdoge.com appear to know a fair bit about the tax laws, specifically in regards to Washington State law. Now they may be a bit biased, but the article ‘Washington to Give Microsoft a $100 Million Annual Tax Cut…and Possible Amnesty on Past Tax Evasion‘, if accurate, is troubling.
Microsoft plays a good game, trying to market their company as a responsible corporate citizen. Using the rules to avoid paying taxes by having an office in another state to collect one type of revenue may be legal (I’m not familiar with the local rules). It may not be legal. But avoiding taxes when your home state as a horrible budget deficit is not the act of a responsible corporate citizen.
Read it. Think about it. There could be 1.2 billion owed, depending upon how the law is interpreted. And the assemblyman responsible for the newest legislation used to work for Microsoft. The optics on this one are really bad.
Tuesday February 16, 2010