Danish Supreme Court Upholds Tax Agency's Estimated Assessment due to Lack of Adequate Transfer Pricing Documentation

On 26 April 2021, the Danish Supreme Court issued a judgment on the Danish Tax Agency's authority to make a discretionary estimated assessment in cases where the transfer pricing (TP) documentation of a taxpayer is inadequate. The case concerned whether the TP documentation prepared by Tetra Pak Processing Systems A/S regarding the company's trading with the Tetra Pak Group's sales companies was so deficient that the Danish Tax Agency had been entitled to assess Tetra Pak's taxable income fo…