Pay up, Intel.

[AZAZEL]

 

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 tax authorities want Intel 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 assets 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.

 

Source: http://www.physorg.com/news158302091.html

 

This is the largest claim ever made in a case of transfer pricing, in Denmark. It is not an easy case to lead, let alone win. So even if it is a rather large amount of money, it can swing both ways, really.

[Quick Stop]

Thats one hell of a debt.

[.AshRemains]

 

 

 

 

 

 

 

 

It was worth a shot.

[PacMaan]

Wow and i thought i got screwed for tax

[ChanandlerBong]

I imagine that would be annoying, but it serves them right. Even though my cpu is Intel.

[kingvercetti]

That's a lot of money, but it was probably their own fault and I'm sure they can afford it if worst comes to worst.

[TheGuyFromThere]

I guess they got a community chest card...

[dragonrock]

That's a lot of money, but it was probably their own fault and I'm sure they can afford it if worst comes to worst.

They better...cus they're in our computers making the processes.

[Breaking Bohan]

But what can anyone do about it?

[Guybrush Threepwood]

But what can anyone do about it?

Well, they could pay up, for one.

Underselling to a subsidiary doesn't sound like a big deal, but in economical terms it's a pretty big crime to commit. And judging by the huge fine, nobody bought into the fact that a company dropped 80% value over 2 years after being taken over and invested in by a company that was already planning to push it onto a subsidiary.

 

On the other hand, from Intel's point of view they've just gotten two choices;

-pay up and be out 483 million euros,

-spend less than 483 million euros on lawyers, accountants, perhaps a black sheep, and see if they can fudge the numbers down. Chances are that in an appeal they can bring the total amount down.

[Breaking Bohan]

I don't think corporations have to pay taxes anymore ....