Microsoft contemplates move over tax deferral rules
CEO Steve Ballmer issues warning of the impact of a move offshore
Software giant Microsoft has issued a stern threat to the Obama
administration over its concerns of the US income tax deferral regime.
Steve Ballmer, CEO of Microsoft, said the company would be ‘better off taking
lots of people and moving them out of the US’, particularly given current
constraints of the the US corporate tax system, according to
tax-news.com
US multinational company are able to deduct foreign investment against US
taxes, and defer paying tax on any profits made until its brought back to the
US. The White House has proposed a plan which would mean companies would not
receive a deduction on offshore investments until tax has been paid on offshore
profits.
The measure is expected to result in an additional $60.1bn (£37bn) of tax
revenue for the US treasury.
Further Reading:
Abolishing
tax break weakens US competitiveness
The
UK offers plenty despite its tax regime