tech giant microsoft has avoided billions in taxes in britain australia and new zealand all countries where it has lucrative public sector contracts because of its complex corporate structure a study published thursday claimed the company which insists it respects local laws and regulations everywhere it operates was starving the public purse of muchneeded revenue while receiving taxpayer cash the center for corporate tax accountability and research cictar said in many cases microsoft has paid zero tax in recent years by moving profits to companies taxdomiciled in bermuda and other wellknown tax havens cictar said in a statement according to the study microsoft global finance  an irish subsidiary that has tax resident status in bermuda  consolidated more than 100 billion in investments and despite an operating profit of 24 billion paid no tax in 2020 in another example microsoft singapore holdings posted profits from dividends of 224 billion in 2020 but announced a tax liability of just 15 microsoft boasts of profit margins of over 30 percent to its shareholders yet in the uk australia and new zealand filings show returns of three to four percent said jason ward an analyst with the organisation it does not seem credible that these wealthy markets are underperforming so dramatically he said calling this type of discrepancy a huge red flag for tax avoidance microsoft starves the public sector of much needed revenues while it makes billions as a government contractor with contracts at all levels of government and in virtually every country cictar said in the past five years microsoft has signed public contracts worth at least 33 billion in britain the united states australia and canada according to the study microsoft is under investigation by tax authorities in the united states and other countries including australia and more than 80 percent of its total foreign income is channelled through puerto rico and ireland the report said in fiscal year 2021 and 2020 our foreign regional operating centres in ireland and puerto rico microsoft said in its 2021 annual report taxed at rates lower than the us rate they generated 82 percent and 86 percent of our foreign income before tax contacted by the reports authors microsoft said it respected all local laws and regulations in the countries where it operates we serve customers in countries all over the world and our tax structure reflects that global footprint the company said in a statement