Microsoft paying no UK tax on £1.7bn
The row over the amount of tax multinationals are paying has taken another turn after it emerged that Microsoft pays no UK tax on £1.7bn (€2.1bn) of online revenues.
The US technology group is understood to be channelling online payments for its Windows 8 operating system and other downloads of software through Luxembourg and Ireland, where corporation tax is lower than the UK.
This means that Microsoft's Irish-registered company, Microsoft Ireland Operations Ltd, has reported £1.7bn of revenues from the UK on which it paid no UK corporation tax.
Microsoft said last night: "Microsoft pays all due taxes, as required by law, worldwide. Microsoft subsidiaries are fully subject to tax in the jurisdictions in which we operate."
Microsoft pays corporation tax in the UK on other parts of its business, including marketing.
The scrutiny follows criticism of other internet giants such as Amazon and Google. (© Daily Telegraph, London)