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When the Internal Income Service audited these transactions, ProPublica reported that Microsoft aggressively fought again, including successfully lobbying Congress to vary the regulation to make it harder for the company to conduct audits of large firms. Dame Margaret Hodge, a Labour MP in the UK mentioned, «It is unsurprising – but still shocking – that massively rich global companies brazenly, unashamedly and blatantly refuse to pay tax on the profits they make in the international locations where they undertake business». This is because of the company being tax resident in Bermuda as talked about in the accounts for ‘Microsoft Round Island One, a subsidiary that collects license fees from the use of Microsoft software program worldwide.
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