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Microsoft Avoids U.S. Tax Along With HP, Senate Memo Says

A U.S. Senate committee memo said Microsoft Corp. used aggressive international tax maneuvers to avoid billions of dollars in taxes over the past three years.

The committee memo, released for a hearing today in Washington, said Microsoft used transactions with subsidiaries in Puerto Rico, Ireland, Singapore and Bermuda to save at least $6.5 billion in taxes. The committee also revealed that Hewlett-Packard Co. has used a series of short-term internal loans that allowed the company to tap its offshore cash for domestic operations without paying taxes, according to the memo.