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Microsoft owes the US Treasury $28.9 billion (£23bn) in back taxes, plus penalties and interest according to the Internal Revenue Service (IRS).

The figure, which Microsoft disputes, stems from a long-running IRS investigation into how Microsoft allocated its profits among countries and jurisdictions in the years 2004 to 2013, according to a securities filing

Critics of the practice, known as transfer pricing, argue that companies frequently use it to minimise their tax burden by reporting lower profits in high-tax countries and higher profits in lower-tax jurisdictions.

Microsoft, which is based in Redmond, Washington, said it followed IRS rules and will appeal the decision within the agency, a process expected to take several years.

The company said it has since changed its practices so that “issues raised by the IRS are relevant to the past but not to our current practices,” according to a Microsoft blog.

Microsoft said it believes that any taxes owed after the audit would be reduced by up to $10 billion (£8bn) based on tax laws passed by Donald Trump.

Microsoft shares dropped slightly in aftermarket trading, falling $1.42 (£1.15) to $331 (£269).

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Macron says Ukraine ceasefire ‘must not mean surrender’ – as Trump claims Russia wants ‘to end this war’

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Macron says Ukraine ceasefire 'must not mean surrender' - as Trump claims Russia wants 'to end this war'

Emmanuel Macron has said a peace deal with Russia “must not mean a surrender of Ukraine” – as Donald Trump claimed Vladimir Putin’s forces “want to end this war”.

The US and French presidents met amid fragile relations between America and Europe and after Mr Trump launched a verbal attack on Ukrainian President Volodymyr Zelenskyy.

Meeting in the White House on the third anniversary of Russia’s war in Ukraine, the French president said he and Mr Trump “made substantive steps forward during our discussions”.

Mr Macron told reporters that Europe should do more to bolster defence in the continent.

However, he stressed Russia “is the aggressor” in the conflict and added: “President Putin violated the peace.”

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Trump and Macron’s ‘friendly’ meeting

Peace must allow Kyiv ‘sovereignty’

The French leader then said: “We want peace, he wants peace. We want peace swiftly, but we don’t want an agreement that is weak.”

“This peace must not mean a surrender of Ukraine or a ceasefire without guarantees,” he added. “It must allow for Ukrainian sovereignty and allow Ukraine to negotiate with other stakeholders regarding the issues that affect it.

“It is also a country in which we need to shoulder our responsibilities so that we ensure security and stability for Ukraine and for the entire region.

“For Europeans, this is an existential issue.”

Read more:
Trump and Macron’s careful dance side-stepped divisions

Pic: Reuters
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Macron said any peace deal ‘must not mean a surrender of Ukraine’. Pic: Reuters

‘Get this war stopped’

At a news conference following the talks, Mr Macron said he “fully believes” there is a path forward in negotiations.

He also agreed “there is good reason for President Trump to re-engage with President Putin” – a week after the leaders had a 90-minute-long phone call.

Mr Trump added Russia would accept European troops in Ukraine as part of peacekeeping efforts, adding: “I specifically asked him (Putin) that question. He has no problem with it.”

He told reporters: “When I got here, one of the first calls I made was to Putin and it was made with great respect. They want to end this war.”

Pic: AP
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Mr Macron ‘fully believes’ there is a path forward with peace talks after meeting with Mr Trump. Pic: AP

Mr Trump then explained he wants to “get this war stopped,” whether that’s through a ceasefire or a direct agreement – but when asked if Ukraine should give up territory as part of any deal, he said: “We’ll see.”

The news conference came as Mr Putin said he is ready to discuss Russia cutting its defence budget alongside the US, saying a mutual drop of 50% would be a “good idea”.

The Russian president also touted a possible economic deal with the US, offering talks on a deal for its own rare earth metal supplies and for the sale of aluminium to American firms.

The US president is due to meet Sir Keir Starmer on Thursday, after the prime minister warned Mr Trump that a bad peace deal would be a “disaster for everyone”.

Read more from Sky News:
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US joins Russia to vote against UN resolution on Ukraine

Earlier on Monday, Mr Trump said he hoped Mr Zelenskyy would visit the US to sign a deal on Ukraine’s rare earth minerals soon.

Just last week, in a bitter exchange of words, Mr Trump called Ukraine’s leader a “dictator” and said he “better move fast or he is not going to have a country left” after Mr Zelenskyy had accused him of living in a Russian-made “disinformation space”.

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Trump’s optimism meets Macron’s caution in carefully choreographed dance side-stepping divisions

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Trump's optimism meets Macron's caution in carefully choreographed dance side-stepping divisions

The French call it “langage corporel” – body language.

A notably prolonged handshake, reflecting the complex dynamic between the President of the United States and his French counterpart.

Donald Trump may have hoped to see a full turn by Emmanuel Macron – but got a pirouette.

Follow latest: ‘Good reason” to re-engage with Putin, Macron says

U.S. President Donald Trump and French President Emmanuel Macron react during their meeting at the White House in Washington, D.C., U.S., February 24, 2025. REUTERS/Brian Snyder
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Pic: Reuters

A half-turn, in a carefully choreographed dance, the US leader asserting optimism, the French one, much more cautious in response.

President Trump repeated his view that the war in Ukraine would soon end.

He signalled a dramatic shift by Russia, suggesting President Putin might accept the deployment of European peacekeepers on the ground in Ukraine.

But Emmanuel Macron cautioned that any peace agreement must respect Ukraine’s sovereignty.

Trump claimed Ukraine’s president would be in Washington soon, to sign a deal granting the US access to rare earth minerals to offset US war aid.

Again, the French president gently stressed the need for security guarantees.

Pic: AP
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Pic: AP

Neither side wanted a diplomatic spat, side-stepping the divisions laid bare by events in Kyiv and New York on the third anniversary of the war.

The United States was notably absent when Western leaders convened in Ukraine.

And the United States voted against an amendment to a UN resolution replacing the word “conflict” with the words “full-scale invasion”.

There is a world of difference between Trump’s approach and Macron’s.

Pic: AP
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Pic: AP

In his trademark pragmatic style, the US president seeks a swift end to the war, with economic benefits, even if it risks longstanding alliances.

President Macron’s focus on Ukraine’s sovereignty, prioritising stability and mutual co-operation, represents a more traditional diplomatic stance.

Read more:
Gift any Russian leader could only dream of is in Putin’s grasp

Johnson criticises Trump’s ‘ghastly’ Zelenskyy comments

No one said the wrong thing, but the French president briefly dropped his guard at one point.

Emmanuel Macron appeared to wink towards a journalist who had asked President Trump if he would describe President Putin as a dictator.

Now that is langage corporel.

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Europeans win in UN clash with US over rival resolutions on Ukraine war

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Europeans win in UN clash with US over rival resolutions on Ukraine war

The US has abstained from a UN General Assembly vote on a resolution it drafted on the war in Ukraine after the body approved amendments proposed by European countries.

The vote took place on the same day the 193-member assembly approved a competing European-backed resolution from Ukraine which demanded Russia immediately withdraw from the country.

The duelling proposals reflect the tensions that have emerged between the US and Ukraine after Donald Trump suddenly opened negotiations with Russia in a bid to quickly resolve the conflict.

It also underscores the strain in the US’ relationship with Europe over the Trump administration’s decision to engage with Moscow.

Follow latest: Ukraine war live updates

The US-drafted resolution, marking the third anniversary of Russia’s invasion of Ukraine, had called for an end to the conflict but did not mention Moscow’s aggression.

It also made no mention of Ukraine’s territorial integrity.

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However, it was amended after European nations said that it should include references to Russia’s full-scale invasion of Ukraine and the need for a lasting peace in line with the UN Charter.

It was also amended to include references to Ukraine’s sovereignty.

The amended US-drafted resolution won 93 votes in favour, while 73 states abstained – including the US – and eight – including Russia – voted no.

Meanwhile, there were 93 votes in favour of the Ukraine-backed resolution, while 65 abstained and 18 voted against it.

The UK, France and Germany were among the countries that voted in favour of the Ukraine-backed resolution, which called for a “comprehensive, just and lasting peace in Ukraine”.

The US, Russia, Belarus and North Korea were among those that opposed it.

The US voted against Ukraine's resolution. Pic: AP
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The US voted against Ukraine’s resolution. Pic: AP

The outcome marks a setback for the Trump administration in the UN General Assembly, whose resolutions are not legally binding but are seen as a barometer of world opinion.

However, the result also shows some diminished support for Ukraine – as more than 140 nations had voted to condemn Russia’s aggression in previous votes.

The United States had tried to pressure the Ukrainians to withdraw their resolution in favour of its proposal, according to a US official and a European diplomat.

US deputy ambassador Dorothy Shea, meanwhile, said multiple previous UN resolutions condemning Russia and demanding the withdrawal of Russian troops “have failed to stop the war,” which “has now dragged on for far too long and at far too terrible a cost to the people in Ukraine and Russia and beyond”.

“What we need is a resolution marking the commitment from all UN member states to bring a durable end to the war,” Ms Shea said.

Read more:
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Dorothy Shea said the war has 'dragged on too long'. Pic: Reuters
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Dorothy Shea said the war has ‘dragged on too long’. Pic: Reuters

The world is marking the third anniversary of Russia’s war in Ukraine as America’s allies try to navigate a new reality as Washington’s stance appears to favour Moscow.

European leaders were dismayed last week when they and Ukraine were left out of preliminary talks on ending the conflict.

Mr Trump has called Ukrainian President Volodymyr Zelenskyy a “dictator,” falsely accused Kyiv of starting the war and warned that he “better move fast or he is not going to have a country left”.

Mr Zelenskyy responded by saying the US president was living in a Russian-made “disinformation space”.

Meanwhile, French President Emmanuel Macron is at the White House holding talks with Mr Trump to discuss a peace plan for Ukraine.

At the start of the meeting, Mr Trump told reporters Russian President Vladimir Putin will accept European peacekeepers in Ukraine as part of a potential deal to end the war in the country.

Mr Trump and Mr Macron have been meeting after the pair had earlier joined a call between G7 leaders.

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Trump on Ukraine’s territory: ‘We’ll see’

UK Prime Minister Sir Keir Starmer, who will meet with Mr Trump at the White House on Thursday, appeared virtually and said G7 nations should be ready to “take on more risk”.

Canadian Prime Minister Justin Trudeau, who was in Kyiv, called Russia’s aggression a war on “our way of life”.

European Commission president Ursula von der Leyen said Europe’s “first priority” is to strengthen Ukraine’s resistance.

She said this includes speeding up the delivery of weapons and increasing investment, announcing a further €3.5bn (about £3bn) in aid for Ukraine.

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