On 3 January 2020, the National Tax Court published a decision regarding a Case dealing with controlled transactions that “transactions” also include a provision where there is a capital reduction in a company, which is carried out by a reduction of the share size with subsequent distribution to the company’s shareholders. SKAT was therefore entitled to make a regular resumption of the complainant’s income for the 2009 income year.
Usually, transfer pricing rules are related to inter-company transactions, such as the sale of goods, licensing of intangibles, provision of services and loans, and transfer of assets. In accordance with the case, the issue was to identify whether a less typical transaction was within the scope of the term controlled transactions.
Finally, the decision illustrates that Denmark’s transfer pricing legislation could apply in other types of less typical transactions.
