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Microsoft facing French tax dodge probe: report

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Nicola Hebden - [email protected]
Microsoft facing French tax dodge probe: report

An alleged tax dodging scheme by Mircosoft’s French subsidiary has been revealed following an inspection at the end of June, at which the head of the tax office and 37 judiciary police were present.

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Weekly satirical paper Le Canard Enchaîné revealed in its latest edition that an inspection on June 28th has led French fiscal authorities to believe Mircosoft has a system in place to dodge the 33% tax rate on businesses in France.

The French subsidiary of the American computing firm, based in Issy-sur-Seine, south west of Paris, is accused of billing work done in France for French clients through companies outside of the country.

According to Le Canard Enchaîné, the French tax office fears Microsoft’s tax avoidance could be even more widespread - the system found on June 28 is thought to have been in place since 2008.

French business tax is high in relation to other countries. In some states in America, like Washington or Nevada, the tax rate is 0%. In Ireland it is 12.5%.

Microsoft’s French subsidiary claims on its website to have created in total 75,000 jobs in France, with its 1,700 partners.

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