Advertisement

HindustanTimes Fri,31 Oct 2014

Denmark wants $1 bln in back-taxes from Microsoft: local radio

Reuters  Copenhagen, March 05, 2013
First Published: 13:14 IST(5/3/2013) | Last Updated: 13:16 IST(5/3/2013)

Denmark wants Microsoft to pay 5.8 billion Danish crowns in back taxes in one of the biggest tax cases in the country's history, local media reported on Monday.

Advertisement


The Danish tax authority is in negotiations with Microsoft over unpaid taxes stemming from the 10.8 billion-crown takeover of Danish software company Navision in 2002, Danish Radio DR said, quoting unnamed sources.

The tax authority claims Microsoft sold the rights to Navision's successful business planning software, now under the name of Dynamics NAV, at below market value to a subsidiary in Ireland, DR said.

As a result the tax authority is claiming 5.8 billion crowns in back taxes and interest from sales of Dynamics NAV, the public service radio broadcaster said.

A Microsoft representative in Denmark declined to comment on the report as did the Danish tax authority.

The Danish government proposed in February to gradually lower the corporate tax rate to 22 percent from 25 percent, while corporate tax in Ireland can be as low as 12.5 percent, depending on the type of business.

A recent U.S. government report said U.S. multinational companies reported 43 percent of their overseas profits in tax havens like Bermuda, Ireland, Luxembourg, the Netherlands and Switzerland in 2008.


Advertisement
more from Business

Air India may face a major pilot shortage by 2015

National carrier Air India may face a major shortage of pilots next year. According to an internal analysis done by the airline, AI would need about 260 pilots by October 2015.

markets
Advertisement
Most Popular
Advertisement
Advertisement
Copyright © 2014 HT Media Limited. All Rights Reserved