U.S Demanded $28.9 Billion In Audit Dispute: Microsoft Says

In September, Microsoft received notice from the U.S. IRS, requesting an additional $28.9 billion in taxes, along with penalties and interest, for the years 2004 to 2013.

These IRS notices pertain to an ongoing dispute between Microsoft and the U.S. tax authority. The audit focuses on Microsoft's profit allocation across various countries and jurisdictions.

Microsoft anticipates that post-audit taxes could be lowered by up to $10 billion, citing tax legislation enacted during the tenure of former President Donald Trump.

Over a decade ago, Microsoft disclosed its practice of manufacturing and disseminating software in Singapore, Dublin, and Puerto Rico to manage profit routing for tax reduction.

"We disagree with the proposed adjustments and will vigorously contest the through the IRS's administrative appeals office and, if necessary, judicial proceedings," the company said in its filing to the US markets authority. 

This led to a significant global pact involving 140 nations, facilitated by the OECD, aimed at improving the equitable distribution and oversight of tax revenue generated by major corporations.

Within the EU, in 2016, Apple was instructed to reimburse 13 billion euros ($14 billion) in unpaid taxes due to comparable accounting methods. Despite an initial appeal loss, Brussels awaits the verdict of a subsequent appeal.