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

This is news?

[TwistedGreen]

So what? This is what tax lawyers DO. Any competent company would do this, and I don't see anything wrong with it.

Re:What a Troll!

[cgenman]

You will never be able to find a tax reduction you can attribute to the government collecting this. That's not how it works, it just means the government is taking more. That doesn't mean I think the government should tolerate tax evasion. It will make MS a little less profitable/competitive, because they either have to absorb the higher tax from their profits or raise their prices/sales.

Seeing as how most government organizations are operating in the red due to the cashpocalypse, the "tax reduction" from collecting this would come in the form of fewer emergency bond measures that we will be saddled with paying back ten years down the road.