Microsoft receives a tax assessment of more than 29 billion dollars – IT Pro – News

The US tax authorities have assessed Microsoft $28.9 billion for unpaid tax payments between 2004 and 2013. The tech company claims that this assessment is unjustified and is appealing. This process is expected to take years.

According to the IRS, Microsoft did not properly attribute profits to certain countries and jurisdictions during the period in question, according to an SEC document spotted by CNBC. The tax authorities therefore submitted a proposal with a correction regarding the correct distribution of profits, which amounts to a tax arrears of almost 29 billion dollars excluding interest and penalties. No total amount is mentioned in the document.

In the SEC document, Microsoft appeals the notice. The company claims that approximately $10 billion in taxes paid were not included in the calculations and that the profit distribution was correct. Microsoft says it will appeal the decision first through the IRS appeals process and possibly then in regular courts. A final decision is not expected for “several years.”

Microsoft says it has paid a total of $67 billion in taxes in the United States since 2004. By comparison, in fiscal 2022, the company earned $198 billion worldwide, including about $83 billion in operating profit.