China levies $140 million fine against Microsoft for tax evasion

China has levied a fine of $140 million, or 840 million yuan, against Microsoft for tax evasion. The fee would cover back taxes and interest owed. Additionally, the agreement reportedly stipulates that Microsoft would pay more than 100 million yuan in additional taxes a year in the future.

According to Reuters, China's Xinhua news agency reported the 840 million yuan fine against a company whose wholly-owned subsidiary is located in Beijing:

The article refers only to a company whose name starts with "M," is one of the world's biggest 500 firms and which established a wholly-owned foreign subsidiary in Beijing in 1995. Microsoft is the only company that fits that description.

Reuters said that Microsoft neither confirmed nor denied the report.

Tax authorities investigated the "M" company after it had reported losses for six years whereas its peers had profitable business operations.

It said the U.S. company admitted to tax evasion and its mainland subsidiary had agreed to pay the central government.

Source: Reuters

Chuong Nguyen

Chuong's passion for gadgets began with the humble PDA. Since then, he has covered a range of consumer and enterprise devices, raning from smartphones to tablets, laptops to desktops and everything in between for publications like Pocketnow, Digital Trends, Wareable, Paste Magazine, and TechRadar in the past before joining the awesome team at Windows Central. Based in the San Francisco Bay Area, when not working, he likes exploring the diverse and eclectic food scene, taking short jaunts to wine country, soaking in the sun along California's coast, consuming news, and finding new hiking trails.