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Was Microsoft Forced To Pay $136M In Back Taxes In China?

Posted by samzenpus on from the pay-up dept.

itwbennett writes China's state-controlled Xinhua News Agency said on Sunday that an unnamed international company was forced to pay 840 million yuan ($136 million) in back taxes, as part of a Chinese government crackdown on tax evasion. The Xinhua article simply referred to it as the "M company," describing it as a top 500 global firm headquartered in the U.S. that in 1995 set up a wholly owned foreign subsidiary in Beijing. The details match Microsoft's own background, and no other company obviously fits the bill. Xinhua added, that despite the company's strengths, its subsidiary in China had not been not making a profit, and posted a loss of over $2 billion during a six-year period.

4 of 57 comments (clear)

  1. License Audit by decipher_saint · · Score: 3, Funny

    If that's the case I suspect a fairly large license audit on the way...

    --
    crazy dynamite monkey
  2. In return.... by Rick+Zeman · · Score: 4, Insightful

    Microsoft should send the Chines Gov't a $136M bill for piracy.

    1. Re:In return.... by wiggles · · Score: 3, Informative

      Chinese law is arbitrary and selectively enforced, often with no penalty for certain things. For example, smoking in certain areas is illegal, but there is no punishment for doing so, so people just smoke wherever they like.

  3. Other 'M' companies by Sez+Zero · · Score: 4, Insightful

    McDonalds' was in China in the 90's. There are dozens of other M companies in the Fortune 500. I'm surprised only one fits the profile. Merck, MorganStanley, McKesson, Monsanto, Marriott, Manpower, MGM Resorts, Micron, etc. That was the time to setup in China, I wouldn't be surprised if it was something like MRC Global, Inc and the MS hint was dropped just for headlines.