Tech giant Microsoft has evaded billions in taxes in Britain, Australia and New Zealand

The tech giant Microsoft is accused of evading billions of dollars in taxes in Britain, Australia, and New Zealand—all countries where it has lucrative public sector contracts based on a study by The Center for Corporate Tax Accountability and Research (Cictar). This is allegedly because of Microsoft’s intricate organisational structure.

Cictar claimed that the company, which asserts that it abides by local laws and regulations everywhere it operates, was robbing the public coffer of desperately needed revenues while taking money from taxpayers.

Microsoft has frequently avoided paying taxes in recent years by transferring income to entities tax-domiciled in Bermuda and other well-known tax havens, according to a statement from Cictar.

The investigation claims that Microsoft Global Finance, an Irish company with tax residency in Bermuda, accumulated more than $100 billion in investments in 2020 while paying no taxes despite having an operating profit of $2.4 billion.

Another example is Microsoft Singapore Holdings, which in 2020 reported dividend profits of $22.4 billion but only $15 in tax liabilities.

A research released on Thursday alleged that the tech giant Microsoft had evaded billions in taxes in Britain, Australia, and New Zealand—all nations where it has lucrative public sector contracts—due to its intricate organisational structure.