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Microsoft owes $1 billion in taxes to Denmark

By Mason White 12:52 PM March 5, 2013

By: Debbie Gross
Microsoft has found itself hit with a big tax bill, according to a statement by the government of Denmark.

Denmark wants Microsoft to pay $1 billion in back taxes in one of the largest tax cases in U.S. history, the local press in Denmark reported on Monday.

The Danish tax authority is in talks with Microsoft over unpaid taxes arising from the acquisition of Danish company Navision Software in 2002.

The tax authority said that Microsoft sold the rights to the successful Navision business planning software, now under the name of Dynamics NAV, below the market value of a subsidiary in Ireland.

As a result, the tax authority claims 5.8 billion kronor in back taxes and interest on the sale of Dynamics NAV.