It’s no secret that China and Microsoft don’t see eye to eye. The two have had a bitter relationship in the past, and the present doesn’t seem to offer any better either. First off, Microsoft saw its operating system get banned in the world’s most populous nation, then the Office productivity suite was met with similar negativity. Then the company saw its offices raided. And now, it has been slapped with a $140 million fine by China for alleged tax evasion. Furthermore, the company will see a rise in tax by as much as 100 million.
The report comes from government run Chinese news agency Xinhua, which has been wrong a couple of times in the past. Moreover, the publication hasn’t specified if the company in question is Microsoft, as for now, Xinhua is calling it “M”. A report on Reuters, however, speculates and assures readers that it is Microsoft we’re talking about.
In a statement to Reuters, Microsoft neither denied nor confirmed its involvement. “In 2012 the tax authorities of China and the United States agreed to a bilateral advanced pricing agreement with regards to Microsoft’s operations in China. China receives tax revenue from Microsoft consistent with the terms of the agreed advanced pricing agreement.”
According to Xinhia, “M” has reported losses for six years in China for more than 2 billion yuan while other companies were able to take benefits of tax authorities. More on this as it develops.
Further reading: China, Microsoft, Office, Tax Evasion, Windows 8
