Microsoft tax affairs questioned in UK
20 Jun 2016
Microsoft has joined other US multinational companies to have its tax affairs called into question after it emerged that the company had been able to avoid taxes amounting to £100 million a year by booking sales through Ireland.
The Washington State-based company, had allegedly sent over £8 billion of revenues from computers and software that were bought by UK shoppers through to Ireland, to avail of a lower rate of corporation tax, according to an investigation by the Sunday Times.
According to the newspaper, elements of Microsoft's off-shore structure had received the blessing of the UK tax authorities.
The UK's corporate tax rate, at 20 per cent is much higher than Ireland's at 12.5 per cent, although the former would fall to 17 per cent by 2020.