IT Company Wins Transfer Pricing Case in Danish Top Court (1)

Denmark’s supreme court canceled the remainder of a multimillion-dollar transfer pricing assessment against pan-European information technology distributor EET Group A/S.

The Danish tax authorities couldn’t claim the group’s transfer pricing documentation was so deficient that it justified a tax assessment on an estimated basis, the court said in its Wednesday ruling.

In addition, they didn’t prove the group failed to act at arm’s length—conducting transactions as if related parties were independent — in regard to its sales companies in Spain and Norway, the court added.

The Danish Tax Agency, called SKAT at the time, initially increased EET Group’s taxable ...