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: MasterCard, Zwipe announce fingerprint-sensor card

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

Facebook sues law firms, claims fraud

4 hours ago

Facebook is suing several law firms that represented a man who claimed he owned half of the social network and was entitled to billions of dollars from the company and its CEO Mark Zuckerberg.

IBM 3Q disappoints as it sheds 'empty calories'

4 hours ago

IBM disappointed investors Monday, reporting weak revenue growth again and a big charge to shed its costly chipmaking division as the tech giant tries to steer its business toward cloud computing and social-mobile ...

MasterCard, Zwipe announce fingerprint-sensor card

Oct 18, 2014

On Friday, MasterCard and Oslo, Norway-based Zwipe announced the launch of a contactless payment card featuring an integrated fingerprint sensor. Say goodbye to PINs. This card, they said, is the world's ...

User comments : 0