Danish High Court Rules on Transfer Pricing for Software Marketing Activities and Discretionary Assessment for Non-Contemporaneous Documentation

On 28 March 2018, the Danish Eastern High Court issued a decision concerning whether a commission agreement for marketing software in Denmark can be extended to computers using the software, and whether a lack of contemporaneous transfer pricing documentation can result in a discretionary assessment. The case involved Microsoft Denmark ApS, which received commission fees under an agreement for the marketing of Microsoft software sold in Denmark by Microsoft Ireland Operation Limited.

For th…