In general, the 2012 statistics reveal a trend of substantially increased transfer pricing activity by the tax authorities.
Transfer pricing audits
According to SKAT statistics for 2012, transfer pricing adjustments more than tripled in 2012, when compared to 2011. The increased level of adjustments is viewed as indicating a more aggressive position of the tax authorities concerning transfer pricing issues.
The aggregated transfer pricing adjustment amount for 2012 also set a new record for SKAT—adjustments for 2012 were DKK 21.2 billion (approximately U.S. $3.85 billion).
Table 1: Number of transfer pricing audits with upward adjustments
| Tax year |
Number of transfer pricing audits |
Adjustments (DKK in billions) |
| 2012 |
67 |
21.2 |
| 2011 |
47 |
6.1 |
| 2010 |
40 |
6.2 |
| 2009 |
32 |
15.2 |
| 2008 |
27 |
8.7 |
A large number of the 2012 transfer pricing audits—16 out of 67—related to audits of transfers of intangibles and remuneration relating to intellectual property (IP) rights. The adjustments relating to IP were DKK 13.1 billion—equivalent to more than 60% of the adjustment level.
In comparison, the downward adjustments in 2012 are viewed by tax professionals as being insignificant (approximately U.S. $64 million).
Table 2: Number of transfer pricing audits with downward adjustments
| Tax year |
Number of audits |
Adjustment (DKK in millions) |
| 2012 |
18 |
351.3 |
| 2011 |
24 |
780.8 |
| 2010 |
18 |
547.1 |
MAPs, APAs
The SKAT has a well-established program for MAPs and APAs, aligned with the network of double taxation agreements.
The SKAT efforts in 2012 resulted in closing 13 MAP cases being closed, and 76 MAP applications pending.
Table 3: MAPs pending, settled
| Tax year |
MAPs pending |
MAPs settled |
| 2012 |
76 |
13 |
| 2011 |
53 |
18 |
| 2010 |
36 |
27 |
| 2009 |
52 |
7 |
| 2008 |
36 |
16 |
During the same period, the tax authorities signed two bilateral APAs, whereas 13 APAs were under preparation for negotiations with other countries’ competent authorities.
Table 4: APAs pending, settled
| Tax year |
APAs pending |
APAs settled |
| 2012 |
13 |
2 |
| 2011 |
9 |
4 |
| 2010 |
8 |
7 |
| 2009 |
12 |
3 |
| 2008 |
12 |
1 |
KPMG observation
Tax professionals with KPMG’s Global Transfer Pricing Services practice in Denmark have considered the 2012 statistics in light of their experience with respect to transfer pricing audits and in resolving double taxation issues via APAs and other dispute resolution methods.
For more information, contact a tax professional with KPMG’s Global Transfer Pricing Services practice in Denmark:
Henrik Lund, Head of Global Transfer Pricing Services Denmark
+45 73 23 32 89