Microsoft Does Something Surprising
 

Remember the kerfuffle in Russia where the authorities were using “piracy�
as a pretext to clamp down on dissident groups? And how Microsoft pulled the
rug out from under them by unilaterally granting software licences at no
charge to those groups?

Now this automatic licence grant is being extended to a bunch of other
countries
<http://www.techdirt.com/articles/201...reely-license-
software-to-nonprofits-in-countries-with-authoritarian-regimes.shtml>.
Of course, I have heard at least one comment that Microsoft gets to deduct
the full retail price of these licences off its taxable income. But that
doesn’t make sense: surely you only get to deduct money you actually spent?

Re: Microsoft Does Something Surprising
 

On Oct 19, 11:46*am, Lawrence D'Oliveiro <l...@geek-
central.gen.new_zealand> wrote:
>
> Now this automatic licence grant is being extended to a bunch of other
> countries
> <http://www.techdirt.com/articles/201...icrosoft-massi...
> software-to-nonprofits-in-countries-with-authoritarian-regimes.shtml>.
> Of course, I have heard at least one comment that Microsoft gets to deduct
> the full retail price of these licences off its taxable income. But that
> doesn’t make sense: surely you only get to deduct money you actually spent?
It does not. AFAIK Microsoft arranges its affairs so as much profits
as possible appear in Ireland, which probably has a 'soft touch' with
respect to this. 'Transfer' arrangements between national subsidiaries
pose a big problem to tax collectors unless the multinational in
question is excessively greedy. IRD's recent court victories where
courts upheld a 'purposeful' interpretation ('The meaning of an
enactment must be ascertained from its text and in the light of its
purpose') as distinct from a 'black letter' interpretation will no
doubt give IRD extra courage to go after shonky transfer
arrangements.

Re: Microsoft Does Something Surprising
 

On 19/10/10 12:28 PM, peterwn wrote:

> It does not. AFAIK Microsoft arranges its affairs so as much profits
> as possible appear in Ireland, which probably has a 'soft touch' with
> respect to this.

Ireland has lower company taxes than the rest of Europe, there are quite
a few companies that do exactly the same thing, Apple is also one.