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Forums - Microsoft Discussion - Microsoft admits to dodging $29B in taxes. Yes, billion with a B.

Baalzamon said:
Lafiel said:

yea, better give it to some rich shareholders rather than spending for science, education, infrastructure, welfare,...

What exactly do you think happens when the rich shareholders make money off of it? For one, they pay taxes (which then goes towards science, education, infrastructure, welfare...). What is left over gets pushed right back into the economy (whether it be them spending it on goods, or them investing it in companies, which are responsible for improving science, education, infrastructure, welfare...

So I'm really confused how rich shareholders getting the money is any worse off?


Except they don't, they put it offshore so it wont be taxed.



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ModBod said:

Except they don't, they put it offshore so it wont be taxed.

What? Let me get this straight, you are suggesting they sell the securities that made more money, but immediately move the money to offshore accounts, and therefore avoid the taxes?

Because you will still get your tax forms for the sale of those securities, and you will still pay taxes on it.



Money can't buy happiness. Just video games, which make me happy.

Dr.Henry_Killinger said:

Smart Move.

Corporations practice Tax EvasionTax Avoidance in order to be more lucrative.

Tax EvasionTax Avoidance  is not a crime, Tax AvoidanceTax Evasion is.

Its the equivalent of spamming agility and double team and x-agilities so you never get hit.

edit: corrected.

THIS!



My idol.



Be prepared to MS changing their nacionality...



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Imaginedvl said:

lol another Daredevil "great" linked bad article about Microsoft...
EVERY companies does that, including Sony and others.

So why is this a worthy news?

Ironically, Tax Avoidance is actually a good thing, and is a common buisness practice.



In this day and age, with the Internet, ignorance is a choice! And they're still choosing Ignorance! - Dr. Filthy Frank

All these company's have off shore accounts



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mornelithe said:
Baalzamon said:
Hell, we should just make it so all companies, regardless of where their headquarters are, should be required to pay taxes to the United States. Even ones that don't do business here at all. That would make more sense :P

Ahh yes, hyperbole, that's a constructive literary device to be using here.  Well played.

That's not hyperbole, it's reductio ad absurdum. Baalzamon took the reasoning to the logical extreme.

Practically every other country taxes corporations for activity within their borders. If a company based in Australia makes money in Japan, then that money is taxed in Japan, and then returned to Australia, where it isn't then taxed again until it's spent, at which point the tax is taken from the company that it was then paid to, not the company that spent the money. It encourages companies to return their money and spend it in Australia, rather than keeping it offshore. If it's returned to Australia, it then returns to economic circulation in Australia, and is thus taxed as it circulates.

In America, if you're based in America, you get taxed on total profits. That means that money you made in other countries gets taxed in America after it's taxed in the other country. This discourages the repatriation of the money, and thus reduces America's economic strength, which means less tax being paid. As public corporations are legally obligated to make every effort to maximise profits for their shareholders within the bounds of the law, and that includes by legally minimising their taxes, they are practically required by law to offshore their profits as much as they can. This is also why those special periods where repatriation of offshored money is permitted without taxation happens so frequently - because these companies keeping their money offshore dampens the American economy, while permitting its repatriation boosts the economy.



They probably don't need to do that. A private citizen would have went to jail for less.



This is Microsoft, that tax amount is nothing.