Microsoft has announced its intent to dispute the US tax authority's demand for an additional $28.9 billion (£23.5 billion) in back taxes for the years 2004 to 2013.

The Internal Revenue Service (IRS) has been conducting an audit to examine how the company allocates its profits across various countries and jurisdictions.

However, Microsoft has asserted that "the concerns raised by the IRS pertain to the past and are not relevant to our current practices."

There have been ongoing apprehensions that the largest corporations do not pay their fair share of taxes in developed countries.

Tech giants have faced criticism for reporting lower profits in high-tax nations and higher profits in jurisdictions with lower tax rates, thereby minimizing their tax liabilities.

In a securities filing, Microsoft disclosed that the IRS was requesting an additional tax payment of $28.9 billion, in addition to penalties and interest.

The company emphasized its commitment to "always following the IRS's regulations and fulfilling our tax obligations both in the US and globally."

Microsoft expressed its belief that any taxes owed after the audit would be reduced by as much as $10 billion, in line with tax legislation passed during the tenure of former President Donald Trump.

Other US tech firms, including Amazon and Facebook, have encountered similar demands to pay higher taxes.

This year, Microsoft has also faced scrutiny from other US authorities. In June, it agreed to pay $20 million to the Federal Trade Commission (FTC) after being found guilty of illicitly collecting data from children who had created Xbox accounts.

Nonetheless, the company may soon secure a triumph in its proposed acquisition of Activision Blizzard, the maker of Call of Duty, for $68.7 billion, as the deal is on track to be finalized shortly. Photo by Coolcaesar, Wikimedia commons.