Intel handed 643-million-dollar Danish tax bill: report

Apr 07, 2009
The logo of US semi-conductor company Intel. Intel, the US technology giant, has been handed a 643-million-dollar bill by tax authorities in Denmark over its disputed sale of a Danish company, the Jyllands-Posten daily reported Tuesday.

Intel, the US technology giant, has been handed a 643-million-dollar bill by tax authorities in Denmark over its disputed sale of a Danish company, the Jyllands-Posten daily reported Tuesday.

The authorities want to hand over 3.6 billion kroner (483 million euros) in unpaid taxes, alleging it sold the Danish technology firm Giga to one of its subsidiaries for a price well below the market rate, it reported.

When a company completes a transaction with itself or one of its subsidiaries, it is bound by Danish law to pay the current market price.

The aim is to prevent any capital gains when those are resold from being transferred to countries with more advantageous tax regimes.

Intel, which originally bought Giga for 9.4 billion kroner in 2000, sold the company to a subsidiary for 1.9 billion kroner two years later.

Investigators argue the actual value of that deal should have been 8.0 billion kroner more, a sum that would have incurred taxes of close to 2.5 billion kroner, the newspaper said.

Authorities are also claiming interest on the unpaid tax bill, which brings the amount owed to 3.6 billion kroner.

Intel disputes those claims and has already filed an appeal in the Danish courts, the Jyllands-Posten reported.

When contacted by AFP, the Danish tax authorities declined to comment on the reports.

(c) 2009 AFP

Explore further: WhatsApp says it now has half billion users

add to favorites email to friend print save as pdf

Related Stories

Experimental Danish ethanol plant built

Sep 13, 2006

A pilot ethanol plant has been built at the Danish Technical University in Lyngby, Denmark, to convert agricultural bi-products into the fuel.

Bird flu spreads into Denmark

Mar 15, 2006

Denmark's government says a strain of the avian flu virus has been found in a wild Danish bird -- the first case of bird flu in that nation.

Recommended for you

Amazon Prime wins streaming deal with HBO

7 hours ago

Amazon scored a deal Wednesday to distribute old shows from premium cable TV channel HBO to its monthly Prime subscribers, landing a blow on rival Netflix in the streaming video battle.

LinkedIn to anchor new San Francisco high-rise

17 hours ago

San Francisco Mayor Ed Lee says the professional networking site LinkedIn will expand its presence in the city by anchoring a high-rise office building under construction.

User comments : 0

More news stories

US urged to drop India WTO case on solar

Environmentalists Wednesday urged the United States to drop plans to haul India to the WTO to open its solar market, saying the action would hurt the fight against climate change.