Microsoft responds to tax payments: don't get me wrong.

November 26 Morning News, Microsoft was asked to pay China 840 million yuan (about 137 million U.S. dollars) of tax and interest is today's concern. According to Sina Science and technology, Microsoft's tax payment is not due to the existence of tax avoidance in China. The truth about the tax payment Reuters today, the news that China's tax authorities have levied about 140 million dollars in taxes on Microsoft has plunged Microsoft into a firestorm of public opinion. But Sina's science and technology found that the truth is not because Microsoft has tax avoidance behavior. The truth is: in 2012, China and the United States reached a bilateral tax reciprocal agreement, under which Microsoft would pay the U.S. tax in proportion to China, and the United States would return the same to Microsoft. It is in accordance with the Sino-US Bilateral Tax reciprocity agreement, Microsoft in 2012 to China's tax authorities to pay about 840 million yuan (about 137 million U.S. dollars) of tax, and then the U.S. tax authorities will be the same amount of tax money returned to Microsoft. In the Reuters report today, the lack of a more detailed explanation led to almost unanimous consensus that Microsoft had tax avoidance in China. Microsoft insiders were dissatisfied with the media coverage and said the company was winging, but they asked for anonymity because they were not authorized to comment on the matter. Microsoft has contributed since the late 80, China has already embarked on the tax avoidance legislation, and has expanded gradually, after the enactment of the "Enterprise Income Tax Law" in 2008, it further improved the relevant content of the anti tax avoidance, and signed bilateral tax agreements with Japan, the United States, Korea and other countries successively. In the process of drawing up bilateral tax treaties, Microsoft has promoted the agreement between the State administration of taxation and the U.S. National Tax Bureau on the bilateral share of taxes. After 3 years of 4 rounds of negotiations between China and the US, the two-sided booking pricing only came into effect after Microsoft filed a bilateral reservation pricing application in December 2008, according to media reports. To celebrate the agreement, Microsoft also held a special press conference with the tax authorities in Haidian district, Beijing. This is because it solves the tax policy problems faced by U.S. companies such as Microsoft, and avoids double taxation. China to step up crackdown on tax avoidance while Microsoft is winging, the crackdown on cross-border tax avoidance by China is a matter of ongoing action. Because multinationals have avoided or reduced their obligation to pay taxes in China by transferring profits abroad. According to media reports, in recent years, the State administration of taxation through the implementation of management, investigation and service of the combination of anti-tax prevention and control system, effectively prevent the loss of state revenue. Statistics show that 2005 China's anti-tax to tax revenue contribution to the income of only 460 million yuan, 2013 anti-tax to tax revenue contribution amounted to 46.86 billion yuan, the cumulative increase of 100 times times. Liao, director of the International Tax administration, said in an interview with the People's Daily that the anti-tax investigation was not only aimed at foreign companies investing in China, but that the tax authorities were also constantly strengthening the survey of Chinese companies ' transfer of profits overseas as more and more Chinese companies went abroad to invest. Held in the days beforeG20 Summit, China has fully acceded to the international anti-tax avoidance action under the G20 framework. This means that China should strengthen international tax cooperation, raise the level of anti tax avoidance, and plug the tax avoidance channels of multinational corporations. (Loliang)