Denmark seeking $1 billion in back-taxes from Microsoft
March 5 , 2013
Denmark wants Microsoft to pay $1 billion in back taxes, according to local media reports on Monday.
The Danish tax authority is in talks with Microsoft over unpaid taxes dating back to the $1.88 billion takeover of Danish software company Navision in 2002, Danish Radio DR said.
The tax authority alleges Microsoft sold the rights to Navision's business planning software below market value to a subsidiary in Ireland.
Corporate tax rates in Denmark sit at 25 percent while rates in Ireland can be as low as 12.5 percent.
According to a recent U.S. government report, U.S. multinational companies reported 43 percent of their overseas profits in tax havens such as Bermuda, Ireland, Luxembourg, the Netherlands and Switzerland in 2008.
Know the administrative divisions of Denmark through Denmark Map