Tag: Estimated assessment

For income tax purposes, where the records kept, particularly by small traders, are inadequate for a precise calculation of tax due, it may be necessary for the taxable income or profits to be calculated by the tax authorities on the basis of an estimate.

Denmark vs. Danish Production A/S, Feb 2018, Tax Tribunal, SKM2018.62.LSR

Denmark vs. Danish Production A/S, Feb 2018, Tax Tribunal, SKM2018.62.LSR

The Danish Tax Tribunal found that the tax administration had been entitled to make an estimated assessment, due to the lack of a comparability analysis in the company’s transfer pricing documentation. The Tax Tribunal also found that the Danish company had correctly been chosen as tested party when applying the TNMM, although the foreign sales companies were the least complex. Information about the foreign sales companies was insufficient and a significant part of the income in the foreign sales companies related to sale of goods not purchased from the Danish production company. Click here for translation SKM2018-62-LSR ... Continue to full case