Microsoft Freeloading In Washington State Courts

reifman writes "For tax purposes, Microsoft reports that it's earned its estimated $143 billion in software licensing revenue in Nevada, where there is no licensing tax, as we discussed a few weeks ago. However, for legal purposes, Microsoft relies on Washington law and its underfunded courts to defend its contracts as it did in Microsoft Licensing GP vs. TSR Silicon. Application of common legal doctrines such as nexus, the step doctrine, and alter ego theory may lead to findings that Microsoft owes the state more than $1 billion in taxes, interest, and penalties."

Comments

Will not matter.

[LWATCDR]

How much revenue does Washington State get from Microsoft? Not just in direct taxes but on all the taxes that the employees pay? Odds are that one billion is a drop in the bucket and Washington state will not risk ticking off Microsoft.
Microsoft is a money pump for Washington State. How many billions of dollars a year does it bring into the state from other states and even countries?
Not that I say it is right but Washington State will not go after Microsoft for this because it just isn't worth the effort or the risk.

Buy your MS licenses in China

[Toe, The]

So then Microsoft would have no problem with me buying my MS licenses in China and using them in the US, right?

Yeah, riiiiiight.

UK

[BlueBoxSW.com]

Was reading an article from the BBC on corporations in the UK claiming other countries as their headquarters to save tax dollars.

Evidently if you do this in the UK, they check see that the heads of the company are ACTUALLY operating in that country.

Why don't we do that here in the US? It seems like a fair standard to me.

Re:What a Troll!

[Attila Dimedici]

The problem isn't MS choosing to report their income from software licensing in Nevada (where they pay no tax on it) instead of Washington (where it would be taxed). The problem is suing a New York state company over licensing issues in Washington state while reporting the income from licensing in Nevada. If Microsoft runs their software licensing business out of Nevada (as their tax reporting claims), then the appropriate venue for suing a New York state based company over licensing issues is either New York or Nevada. Is it legal? Apparently. Is it ethical? No.