Microsoft’s $137 Million China Tax Bill
Microsoft are set for a hefty tax bill as China has slapped a $137 million (about £87 million) tax bill on them. It is the first major case regarding cross border tax evasion in the country. It has been reported that Microsoft would be required to pay the Chinese government 840 million yuan ($137 million) in back taxes with interest added on top of that.
Although there has been no total confirmation of this it is heavily believed that Microsoft are the company that is being discussed. A Microsoft spokesman has said: “In 2012, the tax authorities of China and the United States agreed to a bilateral advanced pricing agreement with regards to Microsoft’s operations in China. China receives tax revenue from Microsoft consistent with the terms of the agreed advanced pricing agreement.”