London: Now, Microsoft has been accused of indulging in ‘immoral tax practices’ in Britain after it emerged that the software giant pays no UK tax on 1.7 billion pounds of online revenues.
The US-based firm is believed to be channelling online payments for its Windows 8 operating system and other downloads of software through Luxembourg and Ireland, where corporation tax is lower than the UK.
This means that Microsoft’s Irish registered company, Microsoft Ireland Operations Ltd, has reported 1.7 billion pounds of revenues from the UK on which the company has paid no UK corporation tax, the Telegraph reports.
Microsoft, however, said that ‘it pays all due taxes, as required by law, worldwide. Microsoft subsidiaries are fully subject to tax in the jurisdictions in which we operate.’
“We are regularly audited by major tax jurisdictions, which ensure the company is complying with all rules and regulations,” the firm said.
The scrutiny on the company follows criticism of other Internet giants such as Amazon and Google, and popular coffee chain Starbucks.
ANI
First Published: Monday, December 10, 2012, 12:08