A Senate committee memo accuses Microsoft (MSFT) of using international subsidiaries to avoid...

|About: Microsoft Corporation (MSFT)|By:, SA News Editor

A Senate committee memo accuses Microsoft (MSFT) of using international subsidiaries to avoid paying $6.5B in taxes, and H-P (HPQ) of creating internal loans in order to use offshore cash for domestic purposes without paying taxes. Neither company is accused of illegal behavior, though judging by comments from committee members, the investigation will increase pressure to close the tax loopholes that made their maneuvers possible. (tax holiday lobbying)