Home › News › Industry News
Denmark to slap Microsoft with $1B in taxes after funneling profits overseas
Microsoft's clever accounting techniques may have been a little too clever, at least according to Danish authorities. Denmark officials are considering a tax levy of 5.8 billion kroner -- or roughly 1.01 billion USD at current exchange rates -- over Microsoft's 2002 acquisition of financial software-maker Navavision. According to the report (Danish), this is Denmark's largest ever tax case.
Reportedly, Microsoft has been using Carribean-based shell companies to operate Navavision's enterprise planning and account units. This has enabled the Redmond software maker to funnel its profits away from Denmark -- a country with a relatively modest 25 percent corporate tax rate. Naturally though, it's difficult for any country to compete with commonly used tax havens like Bermuda, where the effective corporate tax rate is zero percent.
That may be an unsavory-sounding tactic, but Microsoft isn't the first company to leverage Bermuda as a tax haven since it remains a legal practice in the U.S. and much of Europe. Apple, Google and others have also been scowled upon for taking advantage of the same loop holes as Microsoft. In fact, Google saved $2 billion in 2011 via a similar set of techniques, sending about $10 billion of its profits to Bermuda.
Microsoft and Danish officials have purportedly engaged in talks regarding the enormous tax bill. The $1.01 billion figure includes not only back taxes, but penalties and fees as well.
Incidentally, Denmark decided last week to lower its tax rate from 25 percent to 22 percent.
The Nokia Lumia 920 features a Snapdragon S4 1.5GHz dual-core processor, a 4.5" IPS LCD with 768 x 1280 resolution (332 PPI). It packs an 8.7MP rear camera with a 2MP front-facing camera. The Lumia 920 runs Windows Phone 8 and is compatible with charging products based on the Qi wireless power standard. Other specs include, NFC, 1GB of RAM, and 32GB of memory with 7GB of free SkyDrive storage.
The Microsoft Surface features a 10.6-inch Gorilla Glass display and a vapor-deposited magnesium chassis, the Surface runs a Core i5 Ivy Bridge processor and the latter packing an ARM-based Nvidia chip. The Touch Cover measures 3mm thick and has a multitouch keyboard as well as a trackpad, with a Touch Cover, the Surface measures just shy of half an inch.
The Microsoft Surface Pro offers the flexibility of a Windows 8-based tablet as well as an ultrabook-like computer. The Surface Pro is powered by a Core i5 with Intel HD Graphics 4000, 4GB of RAM, USB 3.0, and a miniDisplayPort. It also comes with a pressure-sensitive stylus with palm-rejection technology that magnetically clips to the charging port, and a Full HD (1920 x 1080) display instead of the 1366 x 768 variety on the ARM-based model.
Downloads and Drivers
From the Forums
Subscribe to TechSpot
Receive a weekly update of our best features and tech news you don't want to miss: