The infraction happened in 2004-2013. So that would be over three billion dollars per year.
Microsoft’s operating income in fiscal year 2005 was about $15B and in 2013 almost $27B. So you can kind see where the IRS is getting this number: if they believe that Microsoft evaded tax worth about 10-15% of its earnings before taxes, that’s how it would add up to this whopping sum.
It seems like Microsoft believes they can settle for something much lower. The stock price doesn’t seem to be hurting pre-market at all.
Microsoft’s operating income in fiscal year 2005 was about $15B and in 2013 almost $27B. So you can kind see where the IRS is getting this number: if they believe that Microsoft evaded tax worth about 10-15% of its earnings before taxes, that’s how it would add up to this whopping sum.
It seems like Microsoft believes they can settle for something much lower. The stock price doesn’t seem to be hurting pre-market at all.