China and Microsoft don’t exactly have the best working relationship. China was particularly unhappy when Microsoft ended support for Windows XP and banned Windows 8 from being installed on government computers over spying fears. China also claimed that Microsoft along with the likes of Facebook, Google, and Apple should be punished for alleged spying.
That being said, it seems that Microsoft has also recently been slapped with a $140 million fine over in China for alleged tax evasion, and at the same time have seen its taxes increase by as much as 100 million yuan a year for future payments. This is according to an article published by China’s Xinhua news agency who refers to the company as “M”.
While they did not name Microsoft specifically, the company they mentioned was a US-based company who is one of the world’s biggest 500 firms which established a wholly-owned foreign subsidiary in Beijing. According to Reuters, Microsoft is the only company that fits that description.
While Microsoft did not confirm that they were the company that was fined, they did not deny their involvement either in a statement emailed to Reuters. “In 2012 the tax authorities of China and the United States agreed to a bilateral advanced pricing agreement with regards to Microsoft’s operations in China. China receives tax revenue from Microsoft consistent with the terms of the agreed advanced pricing agreement.”