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Microsoft reported to be facing $137 million bill for back taxes

By Gao Yuan and Reuters | China Daily | Updated: 2014-11-27 06:47

China has levied about $137 million in back taxes on Microsoft Corp in the first major case concerning cross-border tax evasion in the country.

Xinhua News Agency reported on Sunday that a US-based multinational that it did not identify would have to pay the Chinese government 840 million yuan ($137 million) in back taxes and interest, as well as more than 100 million yuan in additional taxes for the coming year.

The article referred only to a company with a name starting with "M", which Xinhua said was one of the world's biggest 500 companies. The article said the company established a wholly owned subsidiary in Beijing in 1995. Microsoft is the only company that fits that description.

Microsoft reported to be facing $137 million bill for back taxes

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