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Microsoft Tax Pay: Microsoft Dealing with Tax Hike in France

Microsoft Corporation (MSFT)Microsoft Tax Pay: As one of the largest companies in the world, there is no denying the fact that Microsoft Corporation (NASDAQ:MSFT) pays a lot of money in taxes. With that being said, the company is getting ready to pay even more in France.

According to a report by French TV channel BFM TV, Microsoft Corporation (NASDAQ:MSFT) is going to be faced with €52.5m added to its tax bill in France.

ZDNet took a closer look at this story to better explain in English what is going on.

“The reassessment relates to its 2007, 2008 and 2009 financial years, according to French TV channel BFM TV. It comes as a result of a tax audit in 2010 that looked into the fees paid by the local branch of the company to its main shareholder, Microsoft Ireland (Microsoft’s European headquarters and main centre of business in the continent are located in Dublin).”

Nobody likes to pay taxes. Even more so, nobody likes to pay more than they have to. This is magnified when dealing with a company that has revenue as large as Microsoft Corporation (NASDAQ:MSFT) .

The article by ZDNet goes on to explain the company’s tax setup in France and why they will owe additional tax money:

“In France, Microsoft acts as a ‘commission agent’ for Microsoft Ireland and gets a fee on every deal signed between the company and French customers. The French income tax department has looked into the amount of those fees, and now believes Microsoft owes an additional €52.5m in tax, BFM reports.”

At this point, there is no word on when MSFT will have to pay the money. This is not the first time the company has dealt with a similar situation. In fact, in 2005 they successfully had a reassessment overturned. It is safe to say they are hoping for more of the same this time around.

We will keep you updated on this story as more information becomes available.

Check back here for more updates on Microsoft Tax Pay.

DISCLOSURE: I have no positions in any stock mentioned.

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