Denmark Pursues $1B Tax Bill Stemming From Microsoft's 2002 Purchase of Navision

Denmark-Skat.png
SKAT, the Danish tax authority

According to a new report from Danish user-funded media outlet DR,  Microsoft still owes the people of Denmark 5.8 billion Kroner, or about $1 billion, dating back to its 2002 purchase of Navision, the basis for its Dynamics ERP and CRM software line.

According the article, the Danish tax authorities are in negotiations with Microsoft and the US tax authorities on the matter.

The case seems to come down to the issue of transfer pricing and concealing of the full value of the purchase, and thus the tax bill, by transferring ownership of Navision at a below-market price to a Microsoft subsidiary n Ireland that is in turn owned by holding companies in Bermuda and the British Virgin Islands.  

...

Requires FREE Membership to View

Login
Become a Member Joining MSDynamicsWorld.com gives you free, unlimited access to news, analysis, white papers, case studies, product brochures, and more, and it’s all FREE. You’ll also receive periodic email newsletters with the latest relevant articles and content updates.
About Jason Gumpert

As the editor of MSDynamicsWorld.com, Jason oversees all editorial content on the site and at our events, as well as providing site management and strategy. He can be reached at jgumpert@msdynamicsworld.com.

Prior to co-founding MSDynamicsWorld.com, Jason was a Principal Software Consultant at Parametric Technology Corporation (PTC), where he implemented solutions, trained customers, managed software development, and spent some time in the pre-sales engineering organization. Jason has also held consulting positions at CSC Consulting and Monitor Group.

Read full bio...