Tax Compliance for Collaborative Software Engineering – Microsoft’s 30 Billion Dollar Problem

An ongoing tax audit has seen the U.S. Internal Revenue Service (IRS) allege that Microsoft owes around $30 billion in back taxes. Among tax experts, the case is perceived as a potential first step toward further high-profile tax litigation involving software firms.

The case highlights the risks associated with cross-border software development collaboration when appropriate transfer pricing practices are not in place. This talk provides background on the legal dispute and explores its implications for InnerSource practitioners. It also introduces a data-driven approach to help organisations identify and mitigate tax risks associated with InnerSource.