Microsoft France ordered to pay $70 million in tax readjustments following a tax auditBy Ron on Saturday, Feb 16th, 2013 at 08:55PM
According to a new report, Microsoft France was paid a visit by French tax authorities who want $70 million dollars in tax adjustments. This would be the company's third and most expensive tax issue in five years. This readjustment comes from an audit that took place in 2010 dealing with transfer prices between the French subsidary and the parent company between 2007 and 2009.
"The investigation began just over a year ago, according to Le Canard Enchainé, when tax inspectors visiting a French gaming company discovered invoices from Irish and U.S. subsidiaries of Microsoft for advertising and commercial services allegedly performed in France by employees of French subsidiaries," a report back in 2012 explained. The French tax authorities are more concerned about the commission that is received by Microsoft France due to these services. It's not the first time that French tax collectors have gone looking for their money. Even Google France received a visit from the collectors back in 2012.
Microsoft, on the other hand, isn't too concerned about the tax readjustment and is continuing to dispute it. The company pointed out that they were set to receive a favorable tax adjustment following another reassessment of another fiscal year.