Shanghai News China Securities Network (reporter Luo Maolin) On Wednesday, local time, Microsoft said in a regulatory filing that it will appeal the decision of the US Internal Revenue Service to recover at least $28.9 billion in taxes. The tax is related to Microsoft's distribution of income and expenses among its global subsidiaries between 2004 and 2013.

The dispute centers on a 2012 IRS audit of transfer pricing, a method used by companies to shift profits to tax havens to avoid the U.S. corporate tax rate. At the time, Microsoft was shifting billions of dollars in profits to jurisdictions like Puerto Rico, which is a U.S. territory but has a much lower corporate tax rate.