[Am-info] Microsoft taxes?

[Eric Bennett]

Geoffrey wrote:
> 
> John Poltorak wrote:
> > On Mon, Sep 09, 2002 at 09:30:09AM -0400, Geoffrey wrote:
> >
> >>I've seen a number of references to Microsoft not paying taxes.  I need
> >>data.  I've got someone arguing that M$ paid more income tax then any
> >>other company last year.
> >>
> >>Data guys????  Help???
> >
> >
> > Try a google search using:-
> >
> >
> > Microsoft federal taxes theregister
> 
> That did it, thanks.  So what do folks make of this (contrary info)???
> 
> http://zdnet.com.com/2100-1107-946250.html

Companies sometimes list their tax liability and then, separately and more
obscurely, list a their stock option tax credit.  This makes it *appear* as
if they have paid a lot in taxes, when in some cases the option credit
almost entirely cancels out the tax liability.  I think some companies
don't even list the options tax credit in their financial statements,
although last time I checked, Microsoft did list it, but it wasn't listed
right next to the tax liability.  Sometimes the liability is listed on the
balance sheet as money "allocated" to pay income taxes but, in fact, the
allocated money is never spent because of various tax credits.  I haven't
looked at Microsoft's financial statement so I don't know whether the
numbers in the above article take this into account or not.


-- 
Eric Bennett ( ericb@pobox.com ; http://www.pobox.com/~ericb )

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