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: Why the Sony hack isn't big news in Japan

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

Why the Sony hack isn't big news in Japan

17 hours ago

Japan's biggest newspaper, Yomiuri Shimbun, featured a story about Sony Corp. on its website Friday. It wasn't about hacking. It was about the company's struggling tablet business.

Sony faces 4th ex-employee lawsuit over hack

22 hours ago

A former director of technology for Sony Pictures Entertainment has sued the company over the data breach that resulted in the online posting of his private financial and personal information.

Sony tells AFP it still plans movie release

23 hours ago

Sony Pictures boss Michael Lynton denied Friday the Hollywood studio has "caved" by canceling the release of "The Interview," and said it still hoped to release the controversial film.

2012 movie massacre hung over 'Interview' decision

Dec 19, 2014

When a group claiming credit for the hacking of Sony Pictures Entertainment threated violence against theaters showing "The Interview" earlier this week, the fate of the movie's big-screen life was all but ...

Clooney slams skittish Hollywood after Sony hack

Dec 19, 2014

Film star George Clooney slammed the Hollywood movie industry for failing to stand up against the cyber threats that prompted Sony Pictures to cancel release of the movie "The Interview."

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.