Microsoft Australia has done a deal with the Aussie government to pay more corporate tax than they have been in the past.
Microsoft, like many other global companies, pays less tax by pretending purchases were made offshore.
For example, someone in Sydney buys Office 2016 or Office 365 online using an Aussie credit card. With some legal and accounting magic, the profits appear in Singapore! Google also uses Singapore while Facebook prefers Ireland.
Gaming and Stooging
The head of Australia’s version of the IRS wasn’t holding back when we described such behavior as “gaming and stooging tactics”
The details aren’t public, but it seems Microsoft Australia will be adding “hundreds of millions of dollars” more to the Aussie public purse than they have in the past.
Australia isn’t the only country where Microsoft, Google, Apple and others manage to avoid their local obligations. Hopefully more tax authorities will follow the Aussie lead.
See Also: Aussie Charade Day