Denmark seeks $1bn in taxes from Microsoft

DANISH tax authorities are demanding 5.8 billion kroner ($A995 million) in tax arrears from Microsoft, public broadcaster DR reports.

"Microsoft owes the treasury five billion kroner ... amounting to a total of 5.8 billion with interest included," DR wrote on its website on Monday.

Danish tax authority Skat is in negotiations with its US counterpart and the company to try to recover the "huge sum," the broadcaster said.

The unpaid taxes relate to Microsoft's acquisition of Danish group Navision, now called Microsoft Dynamics Nav, through its Irish subsidiary.

The Danish agency believes the US group underpaid for the company and then transferred its assets to Ireland, which has a lower tax rate.

Skat declined to comment when contacted by AFP.

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