How is Microsoft Denmark million dollar baby

Like Hamlet's father's ghost, 2002, a Danish tech company is buying back Microsoft is concerned. Danish tax authorities to obtain tax return software giant wants to pay $ 1 billion. If the purchase was made headines back, and Denmark say something about Microsoft's business practices to include their national firms.

Earlier this week, reports surfaced that the Danish tax authorities from Microsoft about U.S. $ 1 billion in back taxes was.


Case, followed by a Danish tax authority largest, Microsoft is buying Danish company Navision 2002. Microsoft in Ireland immediately Navision sell one of its subsidiaries - in a country, as it is more palatable to the corporate tax rate from Denmark.

Nearly a decade later was sold Navision, Denmark now claim that the contract was still less than market value and get lost tax revenue. Wednesday's decision by the European Union fined Microsoft 750 million dollars with the development of European software giant has been a bad week as a result.

Editor's Note: podcast after Denmark's current corporate tax rate is a brief comment. Recently, it was 25 percent to 22 percent.

One can not pretend that often, when people think of the Note as well that. I'm curious if this story is resonating in Denmark and it is a big deal as there is in the technology world.

McGwin: This is - as you said, it made a splash, and a huge splash when it was announced earlier headline. One, because it's Microsoft, and two, when Navision was sold because it was too big for Denmark. It is a national Danish software company that is being bought by - and Microsoft still is - one of the world's most important, the world's largest software companies in general and Computer is one of the companies.

: TNW and that was sold for nearly $ 2 billion, right?

McGwin: Yes - $ 1.5 billion. A Danish company that was one of the biggest buyouts. And so the company (in the news) It's a show at any time.

But surprisingly, for me, it is rapidly died. There have been many follow-up, and is part of the reason, I think this whole transfer pricing, and shipping overseas profits, multinational companies with operations in Denmark, the Danish news A constant theme is the type. Some companies have worked here for decades and literally did not benefit, or have very low profit, we know that global companies are very profitable.

TNW: Navision was bought by Microsoft and later sold to Microsoft Ireland.

McGwin: ... Well, Navision was bought in 2002 by Microsoft, and then between 2003 and 2004, when Microsoft Navision was incorporated as a company, had its billing and shipping operation (s) to Ireland was. Microsoft sold as the Irish allows them to record sales, and Ireland has a corporate tax rate, which is 12.5 percent, and this time, the Danish corporate tax rate was 30 percent. If the companies are Microsoft have had to increase their profits.

But the big question here is how Microsoft as the business is worth. According to the records of Denmark, for sale, Navision tax income 133 million Danish kroner a year (about 23 million) is. Microsoft's expected tax revenue and 750 million kroner year (129 million dollars) was.been without. "

TNW and Denmark did with the echo of this debate?

McGwin: Well, it is argued that they are now. And that is - no, it is not resonating. It is a lot of money. You know, the billions and billions of kroner. And the amount of data, the vast amount of data, there's no point. This is very important.