Microsoft to pay China $ 140 million for tax evasion
While antitrust regulators are putting increasing pressure on Microsoft, China has kept with the American company about $ 140 million in the first major trial for tax evasion in the country, reports Reuters.
The company allegedly avoided paying taxes by transferring large profits from his unit in the Asian country in the United States.
According to an article from the official Chinese news Agency Xinhua, an unnamed U.S. company must pay the Chinese government 840 million yuan ($137 million) in unpaid taxes.
In the message Xinhua Microsoft is not mentioned directly. The text says that we are talking about a company whose name starts with «M» and that it is one of the 500 largest companies in the world. She has owned her unit in Beijing, which started its activities in 1995. Microsoft is the only company that falls under this description.
The company from Redmond has not confirmed the rumors, but denies that we are talking about her.
«In 2012 the tax authorities in China and the United States signed a bilateral price agreement in respect of the operations of Microsoft in China,» said the press Secretary of the company by e-mail.
According to the annual report for the financial year 2014, the overall effective tax rate Microsoft is 21%, significantly lower than the standard rate of 35% for U.S. companies.
Tax evasion is the latest of a series of issues with Microsoft in China, where the company conducted an antitrust investigation. Moreover, earlier China blocked cloud service OneDrive and banned the use of Windows 8 in government.