
Tax ministry loses to accenture in Supreme Court
The Danish Tax Ministry suffered a defeat in the Supreme Court to Accenture in a landmark transfer pricing case, marking the first time the court has unanimously sided with a taxpayer on this issue. The case focused on whether tax authorities correctly raised Accenture A/S’ taxable income from 2005 to 2011 due to employee leasing and license agreements. The court disagreed with the tax authorities, citing Accenture’s adherence to OECD guidelines, and reduced the company’s taxable income for 2007 by over seven million kroner. The Ministry must also pay Accenture’s legal costs totaling 1.8 million kroner, in addition to previous costs of one million kroner. The ruling emphasizes that any doubt in transfer pricing should not disadvantage citizens or companies and that tax authorities need solid grounds for their adjustments.