Denmark pursues Microsoft for US$1bn in back taxes

4 Mar 2013

Software giant Microsoft is being pursued for US$1bn in back taxes by Danish tax authorities. The tax penalty relates to Microsoft’s US$1.88bn acquisition of Danish software company Navision in 2002.

According to Danish radio station DR, Microsoft sold the rights to Navision’s business planning software at below market value to a subsidiary in Ireland.

The Danish tax authority is claiming back 5.8bn crowns in back taxes and interest from sales of Dynamics AV.

Corporation taxes in Denmark are currently at 25pc. In Ireland, corporation taxes are 12.5pc.

John Kennedy is a journalist who served as editor of Silicon Republic for 17 years