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      Effectively managing tax controversy is crucial for businesses operating in today’s complex tax environment. By proactively addressing risks – from pre-tax audits to litigation – companies can reduce uncertainty, limit financial exposure, and maintain operational continuity.

      At KPMG Acor Tax, we support clients in navigating tax disputes with confidence and strategic clarity. It requires a diverse skillset, and our tax team of +270 professionals – including former key figures from the Danish tax authorities and leading law firms – has been involved in most of Denmark’s high-profile and precedent-setting tax cases.

      We take a 360° approach to solve complex tax matters

      Some cases require cross-disciplinary collaboration combining legal, tax technical, IT, strategy and economic expertise. Whether it concerns transfer pricing, corporate tax, VAT, global mobility, valuation or economic analysis, our Danish tax team helps you achieve positive outcomes and obtain strong results throughout the tax controversy process.

      Working closely with our global KPMG network, we also support clients in resolving cross-border and multinational tax disputes – anywhere in the world.

      Client cases

      Explore a selection of our highlighted and recognized client cases.

      Henrik Lund
      Henrik Lund

      Partner, Transfer Pricing

      KPMG Acor Tax in Denmark

      In May 2025, Denmark’s Supreme Court ruled entirely in favor of EET Group in a landmark transfer pricing dispute, addressing some of the most fundamental principles of transfer pricing and the arm’s length standard.

      • The result

        The Supreme Court has confirmed three key principles that will likely influence several pending transfer pricing cases:

      • Resale Price Method (RPM)

        It confirms that the taxpayer has the right to select the transfer pricing method, if the choice is well-founded and properly documented, with the Resale Price Method (RPM) recognized as correct in this case. 

      • Transactional Net Margin Method (TNMM)

        It makes clear that the Transactional Net Margin Method (TNMM) is not a default method and cannot automatically be chosen simply because it may be easier to apply or appears to smooth out possible comparability differences. 

      • Arm’s length range

        The Court rejected the Danish Tax Agency’s long-standing practice of automatically narrowing the arm’s length range to the interquartile range, emphasizing instead that the relevant range must always be determined by the specific circumstances of the controlled transaction.

      • The partnership with EET Group

        KPMG Acor Tax had the privilege of supporting EET Group in the process – from the initial stages of the dispute to the Supreme Court judgment. Our team crafted a defense strategy and comprehensive documentation that stood up to the highest level of scrutiny.

      In January 2019, Denmark’s Supreme Court delivered a definitive ruling in a long-running transfer pricing case involving Microsoft’s Danish operations.

      • The result

        After a decade of dispute, the Court ruled fully in favor of Microsoft, confirming that the company had received arm’s length remuneration for its sales and marketing activities and that its documentation was both timely and sufficient.

         

        The judgment explicitly held that the Danish Tax Agency had no basis to disregard Microsoft’s transfer pricing documentation and, consequently, no foundation for applying a discretionary income adjustment.

         

        The ruling set a solid precedent: tax authorities had to demonstrate material deficiencies before applying discretionary adjustments.

      • The partnership with Microsoft

        At KPMG Acor Tax, we were honored to assist Microsoft throughout the entire process – from the early stages of the dispute to the Supreme Court judgment. Our team ensured a defence strategy and documentation that withstood the highest level of scrutiny.

      In July 2020, the Western High Court in Denmark ruled in favor of ECCO Sko A/S in a long-lasting transfer pricing dispute related to intercompany transactions between the headquarters in Denmark and foreign production subsidiaries.

      • The result

        The High Court rejected SKAT’s contention that ECCO’s transfer pricing documentation was inadequate and that the transactions with its production entities were not in line with the arm’s length principle.  

      • Discretionary assessment

        The High Court found that both the original transfer pricing documentation and material presented before the final decision of the National Tax Tribunal were to be considered when assessing whether the documentation was inadequate to justify a discretionary assessment. The High Court found, on that basis, that the documentation was sufficient for assessing whether the transactions were in line with the arm’s length principle.

      • Contribution margins on internal and external sourced shoes

        Even though ECCO had based its price setting mechanism on budgeted numbers, The High Court recognized the qualitative factors and business rationales behind any differences in contributions margins between shoes sourced from controlled and uncontrolled parties.   

      • The partnership with Ecco

        KPMG Acor Tax was part of the whole litigation process. Our team assisted ECCO with the preparation of additional documentation that not only made the original file adequate to avoid a discretionary assessment but also convinced the High Court that ECCO’s transactions were in line with the arm’s length principle. 

      What we do

      Empowered by our 360° collaborative approach and deep insight into tax authority strategy and case dynamics, we assist companies with anticipating challenges, defending their position, and resolving disputes efficiently.

      controversy-team

      Preventing tax disputes is the cornerstone of our approach

      We believe that proactive measures – ranging from robust documentation and internal reviews to establishing clear, ongoing communication with tax authorities – can eliminate potential issues before they ever arise.

      By anticipating challenges and implementing forward-looking strategies, we help ensure that your business operates smoothly, avoiding unnecessary conflicts from the outset.

      We manage interactions with tax authorities 

      When it comes to managing tax audits and controversies, our approach is based on strategic planning and decisive action. Working closely with you, we take the lead in all interactions with tax authorities, proactively identifying and addressing potential issues at the earliest possible stage.

      This hands-on oversight not only minimises disruption during tax audits, but also strengthens your position to resolve any disputes efficiently and on your terms.

      Should a dispute arise, our focus is on resolving it efficiently and with strategic precision. We take a result-oriented approach that includes direct negotiations with tax authorities and representation in administrative appeals before the Danish Tax Appeals Agency (Skatteankestyrelsen) and the National Tax Tribunal (Landsskatteretten).

      In court proceedings, we assist and collaborate with some of the most skilled and respected tax litigators in the industry to ensure your case is presented with legal precision and deep technical insight.

      Regardless of the forum or method, our objective remains the same: to secure the most favorable outcome for your business, with transparency, control, and confidence throughout the process.

      We have extensive experience within transfer pricing disputes

      We help your business prevent and resolve transfer pricing disputes by guiding you through:

      • The strategic use of Mutual Agreement Procedures (MAP)
      • Bilateral Advance Pricing Agreements (BAPA)
      • OECD’s International Compliance Assurance Programme (ICAP)
      • European Trust and Cooperation Approach (ETACA)
      • Multiple types of arbitration and litigation. 

      Our team has extensive experience within transfer pricing dispute resolutions and provides clarity, certainty, and sustainable outcomes across jurisdictions.

      Recognition in International Tax Review 2024

      Discover our highly regarded Tax Controversy practitioners.

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