The Internal Revenue Service in the US has sued Steve Ballmer, former CEO of Microsoft along with few other former and current executives in the on going case regarding Microsoft’s tax practices. Other former Microsoft executives IRS wants to interview include former partner-program executive Jon Roskill, Windows marketing and business-development head Bill Veghte and marketing chief Mich Matthews. IRS is investigating Microsoft’s corporate structure to find whether Microsoft is evading US taxes by transferring software-selling rights to subsidiaries in other countries.
The IRS earlier this month sued Microsoft itself to compel the company to turn over a trove of documents as part of its inquiry into how Microsoft valued agreements with subsidiaries in Puerto Rico and Bermuda.
The value placed on such transfers has “billions of dollars of impact” on the company’s taxable income between 2004 to 2006, the IRS said in that suit.
In response, Microsoft’s lawyers said the company was already cooperating with the latest requests, after previously turning over 1.2 million pages of documents and making more than 50 employees available for interviews.
Company lawyers accused the IRS of trying to force Microsoft to the negotiating table with overly burdensome requests and an “eleventh-hour barrage of summonses.”
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Source: Seattle Times