The Pardu

The Pardu
Watchful eyes and ears feed the brain, thus nourishing the brain cells.

Sunday, August 24, 2014

Morning Java: Microsoft Keeps $92 Billion Offshore, Avoids $29 Billion in US Taxes

Enjoy while the caffeine kicks-in!!!!

How about a bit of "tax Inversion" to go along with your Sumatra,  Kopi Luwak IndonesianKenya AA, Tanzanian, French Roast, Kona Coast, 'Black Ivory' [Thai Elephant Dong],  Jamaica Blue Mountain, Ethiopian Yirgacheffe, Costa Rican, Espresso,  Moyobama Peruvian Organic, Indonesian Blend, Coffee Latte, Kauai Blend (often bitter), Colombian Red Lips, or your Folgers 100% Colombian?

                             Coffees of the World inversion: American companies going overseas to avoid paying taxes in the U.S.

"Going bold" against US corporate executives and major shareholders who stash US operation (predominately headquarters) in foreign lands to facilitate a lesser tax bite, is nothing shy of leadership. A president who addresses "inversion" exhibit s an existential reality to common for the US political and corporate Right. The president is a realist regarding fairness regarding tax structure and tax privilege. Tax privilege that robs us all full funding for the good of the "great society." If you did not catch clear innuendo just above allow me to be more specific. That president will likely be a Democrat. There isn't a Republican alive who would stand-up to corporate America and uber wealthy industrialist via labeling their tax avoidance "inversion."

The International Business Times (IBT)
White House officials have called the tactics an affront to "economic patriotism" and President Obama himself has derided "a small but growing group of big corporations that are fleeing the country to get out of paying taxes." In a July speech, he said such firms are "declaring their base someplace else even though most of their operations are here." 
"I don't care if it's legal; it's wrong," Obama said. 
If you believe Obama has embarked on "yet another liberal political strategy" you might want to checkout the following graph. 

I redacted the bane of the US corporation for affect. Would it surprise you to know the SEC data in the graph is a ten year history of Microsoft? 

Microsoft hasn't declared a formal subsidiary reporting relationship with an off-shore entity or headquarters, the software giant is technically not in an "inverse" business model. Yet, IBT reports the industry leader has substantially benefited from offshore tax avoidance strategy for years.

Microsoft Admits Keeping $92 Billion Offshore to Avoid Paying $29 Billion in US Taxes

In this April 2, 2014, file photo, Microsoft CEO Satya Nadella gestures during the keynote address of the Build Conference in San Francisco. (AP Photo/Eric Risberg, File)
In this April 2, 2014 file photo, Microsoft CEO Satya Nadella gestures during the keynote address of the Build Conference in San Francisco. (AP Photo/Eric Risberg, File)
This post first appeared at The International Business Times.
Microsoft Corp. is currently sitting on almost $29.6 billion it would owe in US taxes if it repatriated the $92.9 billion of earnings it is keeping offshore, according to disclosures in the company’s most recent annual filings with the Securities and Exchange Commission. The amount of money that Microsoft is keeping offshore represents a significant spike from prior years, and the levies the company would owe amount to almost the entire two-year operating budget of the company’s home state of Washington.

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