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Microsoft The Almighty Buck IT

Ecuador Tax Agency Closes Microsoft Branch Offices 109

Posted by CowboyNeal from the time-to-sniff-the-paper-trail dept.
An anonymous reader writes "The Ecuador Tax Agency (SRI) has closed Microsoft branch offices for seven days. 'We have twice requested balances, payment reports and complete tax information, but the company hasn't given it to us, so in accordance with our laws we have proceeded with the closure,' the SRI official in charge of the proceeding said. Microsoft said it was a human mistake."
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Ecuador Tax Agency Closes Microsoft Branch Offices More

Ecuador Tax Agency Closes Microsoft Branch Offices

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  • Ha! (Score:5, Funny)

    by milo_a_wagner ( 1002274 ) <milo@yiannopoulos.net> on Saturday October 06, 2007 @09:21AM (#20879313) Homepage
    All your branches are belong to us!

    • In Soviet Russia... (Score:1, Funny)

      by Anonymous Coward
      Microsoft closes tax offices.

      • Re:In Soviet Russia... (Score:5, Funny)

        by tomhudson ( 43916 ) <barbara.hudson@b ... com minus distro> on Saturday October 06, 2007 @11:08AM (#20880127) Journal

        As opposed to Soviet Korporate Amerika, where Microsoft taxes YOU!

        In such a context,

        1. couldn't running linux be considered somewhat equivalent to the Boston Tea Party? Or would that be running a pirated copy of Windows?

        2. could running a pirated copy of Windows, in the current "Corporatist" environment, be considered a political statement, and as such, be "protected speech", same as flag burning?

        • Re: (Score:2)

          by cp.tar ( 871488 )

          I'm all for both, especially after the still-ongoing flamewar with another Slashdotter.

          • Re: (Score:2)

            by cp.tar ( 871488 )

            Replying to myself since I cannot simply append to the previous post...

            Flag burning, you say... well, what a coincidence, then, that the Windows logo is a cross between a flag and a window...

            • Well, seeing as the latest openSUSE will run Windows (Win9x or XP Pro) as a guest operating system, either inside a window, or running the individual apps right on the desktop, no wine needed, and its a LOT nicer than Vista ... we have a Winner! Or should I say a Window of Opportunity?

        • Re: (Score:2)

          by Igmuth ( 146229 )
          No no... the Boston tea party would be like hijacking a truck leaving Redmond, and torching the contents.

  • First Time (Score:4, Insightful)

    by Anonymous Coward on Saturday October 06, 2007 @09:24AM (#20879329)
    The first time it may have been a "human" mistake. Second time, I do not think so.

    I wonder if this is related to paying for votes on the ISO committee?

    • Re:First Time (Score:4, Funny)

      by Farmer Tim ( 530755 ) on Saturday October 06, 2007 @11:09AM (#20880137) Journal
      The first time it may have been a "human" mistake. Second time, I do not think so.

      Maybe the first person who made the mistake was fired, and the replacement also happened to make the same mistake.

      That's not giving Microsoft the benefit of doubt, I'm thinking of how many times they make the same mistakes over and over, almost like it's company policy.

      • Re: (Score:1, Insightful)

        by Anonymous Coward
        That's not giving Microsoft the benefit of doubt, I'm thinking of how many times they make the same mistakes over and over, almost like it's company policy.

        If that's the case, would it still be human error to follow company policy? :)
        • If that's the case, would it still be human error to follow company policy?

          Twice over: one human error making the bad policy, another acting on it. Problem is HR never sees it that way.
    • In a statement released to Reuters this afternoon:
      "Well, I don't think there is any question about it. It can only be attributable to human error. This sort of thing has cropped up before and it has always been due to human error."
    • Microsoft: It can only be attributable... to human error.

    • Re: (Score:1)

      by ajleal ( 1169329 )
      Ecuador's vote on Office Open XML Ballot was Disapproval; I don't think MS pay for any votes. Please document yourself before making comment just to make sure to contribute in a positive way.

  • Excel (Score:4, Funny)

    by MK_CSGuy ( 953563 ) on Saturday October 06, 2007 @09:29AM (#20879349)
    Cue in the Excel jokes just about... now!
    • Well, probably the tax office demanded $100,000, and MS only payed 850 rates of $77,1 each, because Excel told them 850*77.1 is 100,000

  • Human error (Score:2, Funny)

    by wjcofkc ( 964165 )
    It can only be attributable to human error. This sort of thing has cropped up before, and it has always been attributable to human error

  • "closing" a business in an online world (Score:5, Insightful)

    by G4from128k ( 686170 ) on Saturday October 06, 2007 @09:35AM (#20879393)
    I doubt this will have the impact that it would if Microsoft were a traditional bricks-and-mortar company. Does this closure prevent Ecuadorians from activating copies of Windows, or downloading updates, or buying additional Microsoft licenses online?

    At what point in time will tax authorities seek the right to seize a company's domain name and DNS entries to truly seize a business for back taxes.

    • Re: (Score:3, Interesting)

      by mysticgoat ( 582871 )

      This means that for at least seven days, any Ecuadoran corporation that needs Microsoft support is SOL [Sh*t Outta Luck]. That might cause some ripples in the mining industry, for instance.

      I don't see how this benefits the worldwide adoption of Vista or Office 2007. This is an entirely new avenue by which a corporate user of Microsoft products might find their operations temporarily "locally orphaned"— that is, without any local vendor support. I'm pretty sure that this event has not been received f

      • Nt really, Microsoft has a huge tech support office in Columbia. Ecuadorians can call for support there.

        A friend of mine (Mexican) who works for Microsoft was offered a position getting the Columbia center off the ground. He turned them down on the grounds that Columbia isn;t a very safe place to be.
      • This means that for at least seven days, any Ecuadoran corporation that needs Microsoft support is SOL [Sh*t Outta Luck]. That might cause some ripples in the mining industry, for instance.
        can't they just call up microsoft in the US directly?

        • can't they just call up microsoft in the US directly?

          For some things. Not for, say, face to face help in preparing a proposal to the bosses for converting the Advertising Department to Vista... which is the kind of support that Microsoft really likes to provide.

          Doubtless there are other kinds of assistance that MS provides locally that are not available through Redmond. Especially wrt social networking and other kinds of "soft" support.

    • I'll make a bet that the large majority of copies of Windows in Ecuador are pirated and hence don't contribute to Microsoft or really get anything from Microsoft, so to them this doesn't matter either way. I say this from years experience living and working in South America. I recall being able to purchase any Microsoft software for about US$2. Of course, there was an government agency whose job it was to stop piracy. Every once in a while, (probably when the right people weren't bribed) you'd hear about r

  • A human mistake (Score:5, Funny)

    by NJVil ( 154697 ) on Saturday October 06, 2007 @09:36AM (#20879399)
    "Microsoft said it was a human mistake."

    Well, it's highly unlikely they'd admit it was a technology mistake. So, a head will roll, a chair will be thrown, and full faith in Microsoft technology will return to normal in Ecuador.

    • Re: (Score:1, Funny)

      by Anonymous Coward
      will the head roll before or after the chair is thrown, one would have hoped that ballmer has improved his aim

    • Re: (Score:2)

      by Alsee ( 515537 )
      Microsoft said it was a human mistake.

      Yeah right... like there are any humans working at Microsoft.

      -

  • tax evasion (Score:5, Funny)

    by ClippySay ( 930525 ) on Saturday October 06, 2007 @09:47AM (#20879457) Journal
    / You look like you're trying to evade \
    \ taxes. May I help you?               /
         \
          \
           \     ____
            \   / __ \
             \  O|  |O|
                ||  | |
                ||  | |
                ||    |
                 |___/

  • Celebrity Section for Slashdot? (Score:5, Insightful)

    by Nymz ( 905908 ) on Saturday October 06, 2007 @09:48AM (#20879459) Journal
    This story feels alot like "Is Britney Spears fit?" or "has Linsey Lohan left rehab too soon?" Do we really need 24/7 coverage of every detail of Microsoft? Hmm, what do you think of these stories:
    • Steve Jobs drops his iPhone again - video link
    • Linus Torvald buys a mac - is this the end of the world?
    • Bill Gates gets a fashion makeover - image slideshow
    • I think the money involved is such stories is infinitesimal compared to a corporation having to pay taxes for a branch as big as a country, even if it's a developing nation.

    • Re: (Score:3, Funny)

      by tomhudson ( 43916 )

      > "Bill Gates gets a fashion makeover - image slideshow"

      They already tried that in the '80s. Didn't work then ... won't work now.

      He was posing for a cover shot for newsweek. He held up something, and you could see the hole in his sweaters' armpit. So they had him take off the sweater. Then you got to see the pit stains on his shirt. They had to literally take the shirt off another Microsoft employee's back to get a "clean shot."

      "Stinkin' nerdz!"

    • Re: (Score:3, Insightful)

      by garett_spencley ( 193892 )
      Your post has just 'caused me to make a revelation about myself that is most disturbing.

      Celebrity gossup / papparazzi is one of my biggest pet-peeves. It drives me INSANE when people care about Paris Hilton being in jail or Britney shaving her head or whatever. The fact that I even know those events occurred makes me want to kill myself. I mean, really WHO THE HELL CARES AND WHY ?!?! Are people's own lives so bloody shallow that they need to constantly invade the privacy of other people that they do not eve

      • Re: (Score:1)

        by GvG ( 776789 )
        Britney shaving her head

        Paris Hilton being in jail was hard to miss even for me. But I managed to not know about Britney. Until you told me, that is... So now I have to go kill myself too. Thank you very much.

        • Re: (Score:2)

          by HiThere ( 15173 )
          Who's Britney?

          For that matter, is Paris Hilton related to the hotels?

          Inquiring minds don't care enough to look it up on Google.
      • Leave the celebrities the fuck alone, they're just people.

        Chris [youtube.com]?? Is that you??

      • Re: (Score:1)

        by jagdish ( 981925 )
        Leave the celebrities the fuck alone, ....
        So you are that guy/girl in the Leave Britney Alone video. That explains it.
      • ``Are people's own lives so bloody shallow that they need to constantly invade the privacy of other people that they do not even know just to see something more interesting ?''

        Yes.

        Especially, of course, if your life consists of doing whatever your day job (or school, etc.) happens to be, and then spending the rest of your time watching tv or reading fashion/gossip/etc. magazines.

        Then there's people who invent causes. Religion. Making a better X. Microsoft must die. Etc. I say "invent", because, usually, if

      • Re: (Score:2, Interesting)

        by Artraze ( 600366 )
        > Only not with pop-culture. I am interest in things like what Linus is currently
        > working on, the direction that Jobs is taking his business, whether Steve Ballmer
        > will be finally taken to an asylum to get the anger management that he needs.

        With the exception of the Ballmer comment, there's nothing wrong with being interested in those things.

        Think of it this way, is it wrong to listen to what Bush says? Or your representative? Of course not, because the decisions these people make affect your l

        • Re: (Score:2)

          by Sciros ( 986030 )

          However, if you run an apple, the decisions Jobs makes will matter to you

          Oh man for like a whole minute I was thinking... is Jobs some fruit guru who knows everything about apples?? And what does it mean to "run an apple" would it be like running *with* an apple, hiking and taking one with you so it can be a convenient snack later in the day? And then I realized, "...ohhhh Apple COMPUTER!"

          The worst part is, it's not like I read that phrase in isolation. I read the previous sentence, too. And a lot of sentences before it as well. And, you know, Slashdot in general. ;_;

      • Re: (Score:2)

        by ivoras ( 455934 )

        Actually, it seems to be an biological evolutionary trait. We are constantly interested in what do other members of our species around us do, whether we like it or not. The reasons is that there's better chance of survival if mistakes are learned from others. The "media" are just catering to this instinct - if people want to do something, someone will figure out how to make money from it sooner or later. Incidentally, this same instinct is why we like reading stories (and watching movies), whether fiction o

      • Re: (Score:2)

        by Ant P. ( 974313 )

        I am interest in things like what Linus is currently working on, the direction that Jobs is taking his business, whether Steve Ballmer will be finally taken to an asylum to get the anger management that he needs.
        Those are different. They do important stuff. That's a good enough reason to follow what they're doing.

      • Re: (Score:2)

        by gatesvp ( 957062 )

        Look, this article, a little vaporous, but overall the stuff you're looking into is not vaporous. If you work in the IT industry, then this stuff is actually your job. Linus and Jobs and Balmer are leaders of large amounts of IT resources. Their decisions influence millions of dollars, move hundreds of bodies and affect the way that you do business.

        Paris Hilton == vapour, she's really not important, she's really just an unimportant peon of the tabloids. Linus/Jobs/Balmer, these are guys influencing the f

    • Re: (Score:3, Interesting)

      by TheRaven64 ( 641858 )

      Linus Torvald buys a mac - is this the end of the world?
      Actually, he didn't. Apple gave him one, to improve PowerPC support under Linux. In hindsight, possibly not a particularly good investment.

    • No special treatment. (Score:4, Insightful)

      by arthurpaliden ( 939626 ) on Saturday October 06, 2007 @10:47AM (#20879973)
      What this story really shows is that this little country treats all its businesses the same. No one gets special treatment just because they are a huge US based multi-national.

      • Re: (Score:1, Troll)

        by wclacy ( 870064 )
        Wrong, This is the treatment you get if you are a Large American Business.
        Ecuador just got a new Anti-American President.
        In Ecuador there are so many small businesses (There is a store on every street corner) that they can only enforce taxes on the large companies.
        In Ecuador you can buy Pirated Movies and CD's just about anywhere. No taxes on them either.

  • The entire story by my beloved Slashdot editor, Cowboyneal, should be modded as flamebait.

    My god. How freaking petty to post such dribble on the front page of Slashdot as we celebrate the 10 year anniversary.

    Yeah. MS is purposefully trying to rip off freaking Ecuador. What is the implication? Rwanda is next on their "hit list?"

    How embarrassing, Cowboyneal. I shall withhold my Cowboyneal vote on the next two polls in retaliation. Next time, RTFA and then look for more sources on Google News.

    There are hundred
    • There are hundreds of countries in the world with thousands of oversight entities. Every single hour/minute, some company gets this sort of "parking ticket." But, feels good when you are a UPS driver and you see that parking ticket on a Fed-Ex truck when you pull up. Right?

      True, but those 'parking tickets' tend to be addressed before they're given out a second time and the office gets closed.

    • Actually this is very significant (Score:5, Informative)

      by einhverfr ( 238914 ) <[moc.liamg] [ta] [srevart.sirhc]> on Saturday October 06, 2007 @12:52PM (#20880845) Homepage Journal
      Many Latin American countries have been struggling with corruption for a long time, Ecuador included. Ecuador in particular has been severely destabilized by such corruption (8 presidents in 10 years-- everything from coups to phony impeachments). Correa vowed to change that, and he has been doing a great job of it so far.

      If Microsoft is not cooperating with tax audits, this could be due to an issue of management in their branch officies, but it could also be due to a human error. What is significant is that this happened at all. 10 years ago, it would have been unthinkable even if they weren't paying taxes at all. 20 years ago, it would have been avoided for fear of covert retribution from the US (as we saw in Guatamala, and arguably Ecuador as well).

      This is significant because it means that Correa is serious about his willingness to stand up to powerful foreign corporations. Its significance is not limited to Microsoft-- this is more significant as to how it affects things like oil exports, foreign-owned banana plantations, and the like.

      The rule of law is being asserted strongly in Ecuador which is a good thing.

    • Ecuadoran corporations that expect local support of the software they license from Microsoft may feel that this is a rather big thing. This isn't a "parking ticket" where Microsoft has to pay a fine. This is a "nobody is allowed to get in the building" show stopper.

      CIOs of corporations in other countries now need to consider a new kind of risk as they decide whether to stay with the same vendor or explore other options. Part of choosing a software vendor has always involved assessing whether that vendor w

      • home users and small buisnesses seem to manage fine without any meaningfull support from MS, why do corps need it so badly?

        and surely if they are really desperate they can just ring microsoft support in the USA.

        If they need more licenses desperately then worst case they can just buy them retail.

        in sumary why is a short term (or even permanent) shutdown of a local branch office significant?
        • home users and small buisnesses seem to manage fine without any meaningfull support from MS, why do corps need it so badly?
           
          Because they do more stuff on a larger scale than home users and small businesses.
           
            and surely if they are really desperate they can just ring microsoft support in the USA.
           
          Who will be absolutely unfamiliar with any localization that is required in Ecuador.
  • Time to vote Steve Balmer and Bill Gates OFF the Board of Directors again. One day we will get lucky, MSFT will rise at LEAST 10..15% if they left. They don't contribute anything anyway.

  • Umm, yeah Ecuador is high on the list... (Score:4, Insightful)

    by LynnwoodRooster ( 966895 ) on Saturday October 06, 2007 @10:28AM (#20879795) Journal
    of "we have a branch there?" offices. Considering Microsoft's revenues are about 1.8 times higher than the entire GDP of Ecuador, it probably doesn't rank really high on the list of priorities, all in all...

    • Re:Umm, yeah Ecuador is high on the list... (Score:4, Insightful)

      by janrinok ( 846318 ) on Saturday October 06, 2007 @12:01PM (#20880515)
      I think your post was intended to be funny - but it should be high on the list of any company operating in any country in the world to ensure that they comply with the local laws. Making a profit higher than a nation's GDP does not absolve any company from full legal compliance. If they don't like it, they can close their offices down and stay back home, but they do not have a right to go elsewhere and behave as if the law does not apply to them. It does, and they are wrong.

      • Re: (Score:2)

        by cheros ( 223479 )
        t should be high on the list of any company operating in any country in the world to ensure that they comply with the local laws

        Well, yes, but you're talking about Microsoft here. They're trying to BE the law, I guess that's the only way to overcome the tiny problem of being a multiple times convicted monopoly.. I'm waiting for a sign that MyEthics has made it out of alpha there, but there seem to be serious interoperability issues with the rest of Microsoft..

      • Re: (Score:2)

        by ozbird ( 127571 )
        "Ve are above ze law!" *throws chair*
      • Interestingly enough, MS is also criticized for following American law when they earn as much money for their shareholders as possible (fiduciary duty).
    • So basically, you're saying that if a company is big enough they should be able to act with complete disdain towards local laws?

      I don't know what's more troubling: rampant corporate arrogance and criminal activity, or those who would be apologists for their corporate overlords (whom I, for one, do not welcome).

    • it probably doesn't rank really high on the list of priorities, all in all...

      Hmmm, let's see, now where in the map [chrisharrison.net] is Ecuador?

      No, I don't think it will rank very high on the list. However, this doesn't mean they are free to break the law. If you don't like the law, then do not open a branch in that country, it's as simple as that. Being a small country makes it a small loss not having a branch there.

  • Ecuador moving to free software (Score:5, Interesting)

    by H4x0r Jim Duggan ( 757476 ) on Saturday October 06, 2007 @10:51AM (#20880003) Homepage Journal
    Don't know if it's related, but maybe Ecuador isn't too afraid of MS nowadays since they're moving to free software:

    http://rudd-o.com/archives/2006/12/13/%C2%A1success-for-free-software-in-latin-america/ [rudd-o.com]
    • There may actually be a whole political scheme behind all this. I've been told by people from Ecuador that their president is good friends with one Hugo Chavez, and wants to copy at least some of his policies. Now, Chavez's dislike of the USA is well known. Microsoft is a US company. Moreover, Microsoft is one of these companies that can be portrayed as exploiting the poor citizens of Latin America. Perhaps what we're seeing now is part of a larger anti-Microsoft scheme. Perhaps it isn't. At any rate, it wi

      • Correa is no Chavez (Score:4, Informative)

        by einhverfr ( 238914 ) <[moc.liamg] [ta] [srevart.sirhc]> on Saturday October 06, 2007 @05:48PM (#20883193) Homepage Journal
        Despite the rhetoric which the media seems to get almost completely wrong, I don't think that Rafael Correa is anything like Hugo Chavez. Correa is a rule-of-law capitalist who wants to see Ecuador develop along the lines of the United States. Of course this means that corporations must be forced to obey the laws evenly, which he has pledged to do. He has also pledged to get the Constitution rewritten to help reduce the level of corruption (restricting who can run on the basis that you must live in the district you want to represent), and a few other structural changes which are not aimed at disolving checks and balances but actually adding them. Independence from US interests and policy is a key element to his approach so he wants to close the USAF base in Manta, and has entered into an alliance of convenience with Chavez.

        My own feeling is that Correa has acted responsibly regarding the attempts to rewrite the Constitution by tackling it immediately so that the question of term limits is less likely to be addressed as a way of keeping him in power.

        CUrrently everything Correa has accomplished has been through sheer power of personality. He has been able to get previously opposing parties to back him and has, time and time again, routed opposition by building political alliances which would have seemed impossible before.

        Correa, unlike Chavez is not a part of a massive political party. In fact, he doesn't have anyone from his party in Congress. Correa wants Ecuador, not Venezuela or Brazil, to be the new center of South America. Appearances aside, I think he is actually Chavez's worst enemy.

        Correa earned his Masters in Economics in Belguim, and his PHD at the University of Illinois. He is a former university professor at USFQ (Universidad de San Francisco de Quito). He is hardly Anti-American. though he does dispise the Bush Administration (but so do I....). He is, however, unlikely to be a puppet to any other government.

  • Also (Score:5, Funny)

    by jeffasselin ( 566598 ) <cormacolinde@gmail. c o m> on Saturday October 06, 2007 @11:40AM (#20880365) Journal
    in completely unrelated news, Microsoft announced that every copy of Windows trying to validate with WGA from Ecuador was found to be non-genuine. The affected systems have started zeroing the data on their hard drives.
    • I very much doubt MS would do something like that. It would make a lot of people change from not caring about the bad stuff MS does to actively planning to migrate ASAP.

  • For a minute there I thought you guys posted something about me...
    Oh, well, I guess I'll have to continue the work for my Ig Nobel nomination to make it to the /. front page.
  • ..for the simple reason that they'd have to be employing human beings for that to happen.
  • *ALL* mistakes are "human mistakes."

  • I lived in Ecuador for a while. The SRI had continually changing requirements for various reports.

    I have also seen small businesses like restaurants closed for days for not paying IVA (VAT tax).

    I once saw graffiti that said something like "stop the corruption of the SRI" -- *on* the SRI office in the jungle city of Puyo. :-)

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