EditorsAbout the SiteComes vs. MicrosoftUsing This Web SiteSite ArchivesCredibility IndexOOXMLOpenDocumentPatentsNovellNews DigestSite NewsRSS

02.04.08

The Game of Economics

Posted in Bill Gates, Finance, Microsoft at 7:58 pm by Dr. Roy Schestowitz

Lesser-known facts at times of recession

The following article has just been cited by Slashdot. It addresses an important issue which we raised in the past. Microsoft’s habits when it comes to taxation (never mind the kickbacks) are quite irregular, but this tends to go unnoticed or unheard of. Here is the opening paragraph from the new article.

When I heard that Microsoft Chairman Bill Gates had invoked the phrase “creative capitalism” at last month’s World Economic Forum in Davos, Switzerland, it reminded me how Microsoft avoids paying taxes on Washington-made software by selling it through Nevada. Since 1997, I estimate, the company has avoided paying more than $528 million in state taxes while racking up $92 billion in profit and distributing more than $42 billion in dividends to shareholders. Microsoft’s creative capitalism has deprived Washington state a lot of tax revenue it needs to pay for critical infrastructure such as replacing the aging 520 bridge that many of its employees use to get to and from corporate headquarters in Redmond.

We recently wrote quite a lot about the Gates Foundation [1, 2, 3, 4, 5, 6] and at times also alluded to its aspect which involves tax evasion.

Additionally, Microsoft’s apparent bluffing when it comes to its financial results [1, 2] received a great deal of attention. To avoid repeating old references, the reader is urged to read those previous posts. Another fine addition to the list of previous citations is this one from yesterday:

Microsoft and the American way

An interesting side-note on the potential Yahoo-Microsoft deal: Microsoft has only $17B in cash/liquid reserves, but has bid $44.6B for Yahoo.

A lot of money appears to have vanished. According to one source, Microsoft reserves used to top $60 billion. It appears as though someone continues to hide the full story from us, or simply moves money between different buckets in order to please shareholders and analysts. Again, you are encouraged to read the previous external references which make a compelling case. This is merely an update.

Related (older) article:

Microsoft’s man in Europe carries communist-era baggage

That report sparked a flurry of speculation in Czech media and online chat rooms about Muehlfeit’s role under the communist regime, and it elicited a public statement at the time from Microsoft, which supported Muehlfeit’s integrity.

Share this post: These icons link to social bookmarking sites where readers can share and discover new web pages.
  • Digg
  • del.icio.us
  • Reddit
  • co.mments
  • DZone
  • email
  • Google Bookmarks
  • LinkedIn
  • NewsVine
  • Print
  • Technorati
  • TwitThis
  • Facebook

If you liked this post, consider subscribing to the RSS feed or join us now at the IRC channels.

Pages that cross-reference this one

2 Comments

  1. Jose_X said,

    February 20, 2008 at 12:19 am

    Gravatar

    I don’t follow MS financials, but they did commit to paying out huge dividends (a one time shot plus another chunk spread over time). Also, I imagine they buy companies or “assets” or whatever. In this way they trade cash for something else of value. Sure there is room here for manipulation, but as I said, I haven’t followed closely and I am not an accountant.

    Has Bill Parish written anything recently on Microsoft that might shed light?

    Oh, and yes, the Foundation should get turned over by the feds at some point I hope; however, Microsoft/Gates are the supreme leaders of our time in taking advantage of “interpretations” and loopholes. Here’s hoping they go too far so that they see some justice. It might be good for their souls.

    Of course, the best way to get caught is to make enemies. If only they would really screw over their major investors.

  2. Roy Schestowitz said,

    February 20, 2008 at 12:26 am

    Gravatar

    Hi Jose,

    For the latest from Parish (very little) and some more details, start here. You’ll need to follow the links from there because we hardly ever repeat references and evidence (we link to this instead). I’ve been watching Microsoft’s financial news very closely for almost 2 years. I was not surprised to find out that Yahoo would have them in debt. They hypnotise people using paid analysts and press which they influence heavily (or practically own).

What Else is New


  1. Links 28/4/2017: Subsurface 4.6.4, GNOME Shell & Mutter 3.25.1

    Links for the day



  2. Kather Augenstein and Bristows Shift Attention to Germany in an Effort to Ram the Dying UPC Down Everyone's Throats

    Down the throat, hopes Team UPC, the Unitary Patent system will go, even though Britain cannot ratify, throwing the whole thing into grave uncertainty



  3. United for Patent Reform Defends USPTO Director Michelle Lee From Attacks by the Patent Microcosm

    Michelle Lee is finally (if not belatedly) shielded by a bunch of large technology companies; The deep-pocketed industry finally steps in line with our position, which is usually when things turn out the way we advocate for



  4. Team UPC and CIPA Are Lobbying, Publishing Puff Pieces, and Rewriting the Law for Unitary Patent (UPC) Behind Closed Doors

    A collection of the latest news and views on the UPC, which is being lied about by those who stand to benefit from it and is probably going nowhere because Brexit means that the UK stays out, in which case it must be reset and pertinent ratifications done all over again



  5. China's Suffering From Patent Maximalism Has Europe Forewarned

    The parasitic elements inside China -- those that just want lots of litigation (even if from patent trolls) -- are winning over, much to the detriment of the Chinese economy, and Team UPC threatens to do the same in Europe with help from Battistelli



  6. Links 27/4/2017: Mesa 17.0.5 RC1, Git 2.13.0 RC1, and Linkerd 1.0

    Links for the day



  7. The Latest Expensive PR Blitz of the EPO, Led by Jana Mittermaier and Rainer Osterwalder Under the 'European Inventor Award' Banner

    The PR agencies of the Corsican in Chief, who appears to be buying political support rather than earning any, are very busy this week, as yet another reputation laundering campaign kicks off



  8. Links 26/4/2017: SMPlayer 17.4.2, Libreboot Wants to Rejoin GNU

    Links for the day



  9. PatentShield is Not the Solution and It Won't Protect Google/Android From Patent Trolls Like Microsoft's

    A new initiative called "PatentShield" is launched, but it's yet another one of those many initiatives (Peer-to-Patent and the likes of it, LOT Network, OIN, PAX etc.) that serve to distract from the real and much simpler solutions



  10. Patent Quality Crisis and Unprecedented Trouble at the European Patent Office (EPO) Negatively Affect Legitimate Companies in the US As Well

    The granting en masse of questionable patents by the EPO (patent maximalism) is becoming a liability and growing risk to companies which operate not only in Europe but also elsewhere



  11. Blog 'Takeovers' by Bristows and Then Censorship: Now This Firm Lies About the Unitary Patent (UPC) and Then Deletes Comments That Point Out the Errors

    Not only are Bristows employees grabbing the mic in various high-profile IP blogs for the purpose of UPC promotion (by distortion of facts); they also actively suppress critics of the UPC



  12. Links 25/4/2017: Kali Linux 2017.1 Released, NSA Back Doors in Windows Cause Chaos

    Links for the day



  13. Astoundingly, IP Kat Has Become a Leading Source of UPC and Battistelli Propaganda

    The pro-UPC outlets, which enjoy EPO budget (i.e. stakeholders' money), are becoming mere amplifiers of Benoît Battistelli and his right-hand UPC woman Margot Fröhlinger, irrespective of actual facts



  14. EPO Fiasco to be Discussed in German Local Authority (Bavarian Parliament) Some Time Today as the Institution Continues Its Avoidable Collapse

    Conflict between management and staff -- a result of truly destructive strategies and violations of the law by Benoît Battistelli -- continues to escalate and threatens to altogether dismantle the European Patent Office (EPO)



  15. In the US and Elsewhere, Qualcomm's Software Patents Are a Significant Tax Everyone Must Pay

    The state of the mobile market when companies such as Qualcomm, which don't really produce anything, take a large piece of the revenue pie



  16. In South Asia, Old Myths to Promote Patent Maximalism, Courtesy of the Patent Microcosm

    The latest example of software patents advocacy and patent 'parades' in India, as well as something from IPOS in Singapore



  17. Links 24/4/2017: Linux 4.11 RC8, MPV 0.25

    Links for the day



  18. Why Authorities in the Netherlands Need to Strip the EPO of Immunity and Investigate Fire Safety Violations

    How intimidation and crackdown on the staff representatives at the EPO may have led to lack of awareness (and action) about lack of compliance with fire safety standards



  19. Insensitivity at the EPO’s Management – Part IX: Testament to the Fear of an Autocratic Regime

    A return to the crucial observation and a reminder of the fact that at the EPO it takes great courage to say the truth nowadays



  20. For the Fordham Echo Chamber (Patent Maximalism), Judges From the EPO Boards of Appeal Are Not Worth Entertaining

    In an event steered if not stuffed by patent radicals such as Bristows and Microsoft (abusive, serial litigators) there are no balanced panels or even reasonable discussions



  21. EPO Staff Representatives Fired Using “Disciplinary Committee That Was Improperly Composed” as Per ILO's Decision

    The Board of the Administrative Council at European Patent Organisation is being informed of the union-busting activities of Battistelli -- activities that are both illegal (as per national and international standards) and are detrimental to the Organisation



  22. Links 23/4/2017: End of arkOS, Collabora Office 5.3 Released

    Links for the day



  23. Intellectual Discovery and Microsoft Feed Patent Trolls Like Intellectual Ventures Which Then Strategically Attack Rivals

    Like a swarm of blood-sucking bats, patent trolls prey on affluent companies that derive their wealth from GNU/Linux and freedom-respecting software (Free/libre software)



  24. The European Patent Office Has Just Killed a Cat (or Skinned a 'Kat')

    The EPO’s attack on the media, including us, resulted in a stream of misinformation and puff pieces about the EPO and UPC, putting at risk not just European democracy but also corrupting the European press



  25. Yann Ménière Resorts to Buzzwords to Recklessly Promote Floods of Patents, Dooming the EPO Amid Decline in Patent Applications

    Battistelli's French Chief Economist is not much of an economist but a patent maximalist toeing the party line of Monsieur Battistelli (lots of easy grants and litigation galore, for UPC hopefuls)



  26. Even Patent Bullies Like Microsoft and Facebook Find the Patent Trial and Appeal Board (PTAB) Useful

    Not just companies accused of patent infringement need the PTAB but also frequent accusers with deep pockets need the PTAB, based on some new figures and new developments



  27. Links 21/4/2017: Qt Creator 4.2.2, ROSA Desktop Fresh R9

    Links for the day



  28. At the EPO, Seeding of Puff Piece in the Press/Academia Sometimes Transparent Enough to View

    The EPO‘s PR team likes to 'spam' journalists and others (for PR) and sometimes does this publicly, as the tweets below show — a desperate recruitment and reputation laundering drive



  29. Affordable and Sophisticated Mobile Devices Are Kept Away by Patent Trolls and Aggressors That Tax Everything

    The war against commoditisation of mobile computing has turned a potentially thriving market with fast innovation rates into a war zone full of patent trolls (sometimes suing at the behest of large companies that hand them patents for this purpose)



  30. In Spite of Lobbying and Endless Attempts by the Patent Microcosm, US Supreme Court Won't Consider Any Software Patent Cases Anymore (in the Foreseeable Future)

    Lobbyists of software patents, i.e. proponents of endless litigation and patent trolls, are attempting to convince the US Supreme Court (SCOTUS) to have another look at abstract patents and reconsider its position on cases like Alice Corp. v CLS Bank International


CoPilotCo

RSS 64x64RSS Feed: subscribe to the RSS feed for regular updates

Home iconSite Wiki: You can improve this site by helping the extension of the site's content

Home iconSite Home: Background about the site and some key features in the front page

Chat iconIRC Channel: Come and chat with us in real time

CoPilotCo

Recent Posts