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

by Jason Gumpert
Editor, MSDynamicsWorld.com

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.  

The DR article also notes that the case is against Microsoft corporatation, based in the US, not the Danish subsidiary which still plays an active role in developing and managing the Dynamics ERP product line. 

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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. He has also held consulting positions at CSC Consulting and Monitor Group.

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