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

10.27.09

Call for Federal Action Against Microsoft (and Gates) Tax Dodge

Posted in Bill Gates, Finance, Microsoft at 8:16 am by Dr. Roy Schestowitz

“My background is finance and accounting. As a socially conscious venture capitalist and philanthropist, I have a very good understanding of wealth management and philanthropy. I started my career in 1967 with the IRS as a specialist in taxation covering many areas of the tax law including the so-called legal loopholes to charitable giving. […] However, the Gates Buffet foundation grant is nothing more than a shell game in which control of assets for both Gates and Buffet remain the same. […] The only difference is that the accumulation of wealth by these two will be much more massive because they will no longer have to pay any taxes.”

The Gates and Buffet Foundation Shell Game

Summary: The financial affairs of Microsoft and its former chairman raise serious questions which the public demands addressal of

WHETHER one calls it a “tax dodge” or “tax evasion” (Microsoft was found guilty in India, for example), it is clear that poor Microsoft (and poor Bill) would rather let all those rich taxpayers take the bills. Yes, the same goes for the Gates Foundation, which is profiteering through investments while not paying tax (it is registered as a charitable establishment). We wrote quite extensively about Microsoft and income tax in, e.g.:

There is a new call for citizens of the United States to contact their representatives and complain about Microsoft’s tax dodge, which has cost the mostly-impoverished population billions of dollars all around the world (it is them who paid from their own pockets for what Microsoft ought to have paid). From a concerned and informed citizen:

When you buy Microsoft software in a box for personal use, you pay sales tax at the point of delivery. But, when large corporations purchase Microsoft software, they are actually buying an electronic download with the right to install that software on a pre-determined number of computers. The same goes for PC manufacturers such as Dell that preinstall Microsoft Windows 7 on its computers.

[...]

Aren’t there laws against this?

According to the Department of Revenue, to avoid this tax, a company, like Microsoft, would need to “effectively transfer the property to a related company (e.g., parent and subsidiary corporations) located outside Washington” and recognize income from the value of the transfer on its Washington taxes. It’s not clear that Microsoft has done this – and there are legal doctrines to charge a corporation if it illegally evades its taxes:

1) The doctrine of Nexus represents ties or links that a corporation has with a state. Microsoft clearly has nexus in Washington given its 40,224 employees, 9.8 million square feet and 79 physical sites. Its software also has nexus here as most is built, tested, marketed, sold and distributed from these facilities. Microsoft’s historical use of the laws of Washington to govern its licensing contracts, its Washington-based lawyers and its use of Washington’s courts to defend it also contribute to the nexus of its licensing business.

2) The Step Doctrine focuses on whether steps of a transaction may stand alone or, rather, whether the transaction should be treated as a whole. It can be applied when a corporation creates additional artificial steps to appear as if it is not liable to pay tax.

[...]

Do Microsoft’s Practices Constitute Illegal Tax Evasion?

Over the past few weeks, I’ve been asking Washington’s Department of Revenue to publish a finding on the legality of this kind of tax practice. The department is required to protect the privacy of taxpayers and therefore cannot answer specific questions about Microsoft only questions about specific practices in the abstract.

From Slashdot’s summary of the above:

For tax purposes, Microsoft reports that it’s earned its estimated $143 billion in software licensing revenue in Nevada, where there is no licensing tax, as we discussed a few weeks ago. However, for legal purposes, Microsoft relies on Washington law and its underfunded courts to defend its contracts as it did in Microsoft Licensing GP vs. TSR Silicon. Application of common legal doctrines such as nexus, the step doctrine, and alter ego theory may lead to findings that Microsoft owes the state more than $1 billion in taxes, interest, and penalties.

Not enough attention is being paid to Bill Gates’ stash of questionable investment funds that he shelters inside a supposedly-philanthropist body, just like other people with his type of wealth. They have found a loophole, so even if laws are ever passed to effectively tax the upper class, most of their money will be kept away from applicability of such laws.

People must begin asking themselves these important questions and learn about the subject using the means and time available. The mainstream press is the friend of those who are buying/funding it, so rarely does it have the courage to expose those who fund it; doing so would essentially drive them out of business because money comes from business (advertisers), not readers and viewers. To press/broadcast, readers and viewers are the products that they sell to advertisers, i.e. businesses that are the real clients. To whit:

“Truthfulness with me is hardly a virtue. I cannot discriminate between truths that and those that don’t need to be told.”

Margot Asquith

In response to our last post on the subject, namely the one about the Gates Foundation and the Rockefeller Foundation, one person replied with the following:

Just look at who all the food-related groups which the Rockefeller Foundation funds:

CSPI (Center for Science in the Public Interest) – the “food police” who back in March 1988 said that trans fats were “relatively harmless”

* Consumer Federation of America (CFA) – used to be headed by Monsanto shill Carol Tucker ForemanMonsanto

PETA – animal “rights” group which kills most of the pets they “rescue” (actually funded by the Rockefeller Philanthropy Advisors)

* Nutrition Action newsletter, March 1988, “The Truth About Trans – Hydrogenated Oils Aren’t Guilty As Charged”

There is also this new gem about the Gates Foundation:

The Financial Times last week ran a story titled “Bill Gates shifts focus to hunger”, covering a major speech by Gates detailing a new emphasis by his foundation on food security and agricultural output in developing countries.

[...]

Second, will the Foundation invest in the type of engagement and advocacy on trade policy issues (exhibit A: subsidies to developed world agricultural industry) that deeply influence food security, especially in sub-Saharan Africa? While the development of new technologies and tools is critical and has often been the Gates Foundation’s sweet-spot, major progress will be held back without a serious shift in the global economic system around agriculture and food.

Here is more information about what the Gates Foundation is doing in Africa [1, 2, 3, 4, 5].

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

What Else is New


  1. The EPO Has Become Battistelli's Circus and the Administrative Council Has Been Reduced to (Illegal) Circus Animals Controlled With 'Treats'

    Battistelli's attack on justice and on the rule of law is debated among insiders who have grown increasingly impatient with the Administrative Council's tolerance of Battistelli and sometimes even Kongstad's amazing complicity



  2. The Latest Lies About the Unitary Patent (UPC) Would Have Us Believe That It's Alive and Well

    How patents-centric sites (some of which are in bed with the EPO) have responded to the 'Brexit' vote and why they're not telling us the truth about the Unitary Patent scam (often created and promoted by the same people who run and/or fund such sites)



  3. EPO Management Bunker: “The Bailiff Who Came to Deliver the Subpoena was Escorted off the Property by Five Security Guards.”

    Battistelli has essentially turned the European Patent Office (EPO) into a barracks, where he continues to enjoy immunity from the rule of law and discourages those who wish to challenge this immunity



  4. Keeping the Guard and Securing Society From Software Patents

    The policies over which Indians and Europeans have kept guard are being 'stolen' by vested interests



  5. Benoît Battistelli Further Weaponises His EPO 'Stasi' With CA/52/16

    A glimpse at what Benoît Battistelli will shortly attempt to do to the EPO, in order to cement his power in the face of growing opposition from many directions



  6. EPO Caricature: Administrative Council Control of Benoît Battistelli

    Another new caricature regarding the President of the European Patent Office (EPO) and lack of effective oversight from the Administrative Council (European Patent Organisation)



  7. EPO Caricature: Firing Benoît Battistelli

    The latest caricature regarding the President of the European Patent Office (EPO)



  8. Links 28/6/2016: Red Hat Summit 2016, Hadoop Events

    Links for the day



  9. Today's Media Coverage Says Microsoft Loves Linux, But Today Microsoft Extorted Linux Using Software Patents Again

    Luna Mobile has just been extorted by Microsoft (using dubious software patents, as usual) for using Android/Linux, but Microsoft-influenced media carries on spreading the lie that "Microsoft loves Linux"



  10. New Efforts to Work Around Barriers to UPC in Light of 'Brexit'; Behind These Efforts Are Self-Serving Patent Profiteers

    look at who's trying to work around the latest barriers to the widely-unwanted (by the public) Unitary Patent regime and what is being planned behind the scenes, or behind closed doors (by and for those who stand to profit from the Unitary Patent regime)



  11. Injunction Against Battistelli's Investigative Unit (Known Internally as 'Gestapo') Amid Serious Injustices and Bogus 'Trials'

    SUEPO, the EPO's staff union, steps up its spiel in a case against the "European Patent Organization" as defendant and "SUEPO/VEOB" (Trade Union of the European Patent Office) as claimants



  12. [ES] Con la UPC Muerta por el Resto del Termino de Battistelli, No Hay Razón para que la EPO o el Consejo Administrativo Sigan Manteniéndolo Más

    Pensamientos acerca de lo que pasará al líderazgo de la EPO después de ‘Brexit’ (salida Británica de la EU), lo que sevéramente socava el proyecto más grande de Battistelli el que usaba habituálmente para justificar sus increíbles abusos



  13. [ES] El Caradura Benoît Battistelli Debería Renunciar a Luz de la Filtrada Nueva Decisión en Su Vendeta en Contra de un Juez que se Atrevió a Decir la Verdad (Actualizado)

    Benoît Battistelli continúa quebrando las propias reglas de la EPO, no sólo las leyes naciónales, como una nueva decisión ayuda a revelar



  14. [ES] Cada Vez Más Parece Que Battistelli está Escondiéndo ‘Evidencia’ Falsa y/o Ilegalmente Obtenda de la Unidad Investigativa de la EPO

    El porqué creemos que Benoît Battistelli está cada vez mas desesperado de esconder operaciónes ilícitas de reunir ´evidencia´ lo que eventuálment lo puso a él mismo — no al acusado — en una situación catastrófica situacion que lo puede forzar (esperamos) a us renuncia



  15. Links 28/6/2016: Vista 10 Updategate, OpenMandriva 3.0 Beta 2

    Links for the day



  16. Links 27/6/2016: Linux 4.7 RC 5, OpenMandriva Lx 3.0 Beta 2

    Links for the day



  17. From Alleged Organised Crime to Vice-President of the European Patent Office (EPO)

    Željko Topić's situation in Croatia illuminated by means of recent documents from the authorities



  18. Battistelli May Still be on the Way Out as Pressure Grows in Germany, UPC in Shambles

    Pressure on Battistelli is growing even from within circles that are traditionally protective of him and a long letter is sent to Dr. Christoph Ernst, who some believe will replace Battistelli



  19. Caricature: European Patent Office (EPO) Under Battistelli

    The latest caricature about the state of the European Patent Office (EPO)



  20. Techrights (Almost) at 10: From Software Patents to Novell and to Present Focus on EPO

    A short story about how and why we ended up writing so much about the European Patent Office (EPO) and the impact beyond Europe



  21. Patents Roundup: Bad Quality (USPTO), Bad Analysis (India), Bad Microsoft, Bad Actors (Trolls), Bad Scope (Software Patents), and the Ugly

    A mishmash of news about patents, mostly regarding the United States, and what can be deduced at the moment



  22. Links 26/6/2016: IceCat 38.8.0, Wine 1.9.13

    Links for the day



  23. With UPC Dead for Battistelli's Entire Remaining Term, No Reason for the EPO or the Administrative Council to Keep Battistelli Around

    Thoughts about what happens to the EPO's leadership after 'Brexit' (British exit from the EU), which severely undermines Battistelli's biggest project that he habitually used to justify his incredible abuses



  24. Links 24/6/2016: Xen Project 4.7, Cinnamon 3.0.6

    Links for the day



  25. Benoît Battistelli Should Resign in Light of New Leak of Decision in His Vendetta Against Truth-Telling Judge (Updated)

    Benoît Battistelli continues to break the EPO's own rules, not just national laws, as a new decision helps reveal



  26. Fake Patents on Software From Fake Australian 'Inventor' of Bitcoin and the Globally-Contagious Nature of EPO Patent Scope

    News from Australia regarding software patents that should not be granted and how patent lawyers from Australia rely on European patent law (EPO and UK-IPO) for guidance on patent scope



  27. Patent Lawyers Love (and Amplify) Halo and Enfish, Omit or Dismiss Cuozzo and Alice

    By misinterpreting the current situation with respect to software patents and misusing terms like "innovation" patent lawyers and others in the patent microcosm hope to convince the public (or potential clients) that nothing in effect has changed and software patents are all fine and dandy



  28. Looks Increasingly Plausible That Battistelli is Covering up Bogus and/or Illegally-Obtained 'Evidence' From the EPO's Investigative Unit

    Why we believe that Benoît Battistelli is growingly desperate to hide evidence of rogue evidence-collecting operations which eventually landed himself -- not the accused -- in a catastrophic situation that can force his resignation



  29. As Decision on the UK's EU Status Looms, EPO Deep in a Crisis of Patent Quality

    Chaotic situation at the EPO and potential changes in the UK cause a great deal of debate about the UPC, which threatens to put the whole or Europe at the mercy of patent trolls from abroad



  30. Another Demonstration by European Patent Office (EPO) Staff on Same Day as Administrative Council's Meeting

    SUEPO (staff union of the EPO) continues to organise staff actions against extraordinary injustice by Benoît Battistelli and his flunkies whom he gave top positions at the EPO


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