Danish authorities have claimed that Microsoft owes around $1 billion in unpaid taxes relating to the acquisition of Navision in 2002.
According to the Danish national broadcaster, DR, Microsoft bought the Danish financial software provider, Navision, in a deal worth around $1.3 billion.
However, shortly after the deal went through, Microsoft sold the rights to the software to its own Irish subsidiary at a price that Danish authorities was too low. This deal allegedly allowed Microsoft to transfer the assets out of Denmark and in to territories where taxes are lower or non-existent.
Microsoft is reportedly already in negotiations with the Danish authorities over the shortfall.