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When the Internal Income Service audited these transactions, ProPublica reported that Microsoft aggressively fought back, together with successfully lobbying Congress to alter the legislation to make it tougher for the agency to conduct audits of huge firms. Dame Margaret Hodge, a Labour MP in the UK said, «It is unsurprising – but still shocking – that massively wealthy global corporations brazenly, unashamedly and blatantly refuse to pay tax on the earnings they make within the countries where they undertake enterprise». This is because of the company being tax resident in Bermuda as mentioned within the accounts for ‘Microsoft Round Island One, a subsidiary that collects license fees from the use of Microsoft software program worldwide. As reported by a number of news shops, an Irish subsidiary of Microsoft based mostly in the Republic of Eire declared £220 bn in income but paid no company tax for the year 2020.

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