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 Isl...
