Maersk and TotalEnergies lose Danish tax case

The Danish Supreme Court has ruled against Danish shipping giant Maersk and French energy company TotalEnergies in a long-running tax dispute.

The case, first brought by the Danish Ministry of Taxation, refers to the tax treatment of income from oil and gas businesses based in Qatar and Algeria.

According to the tax authorities, there was a misuse of transfer pricing which meant that Maersk’s oil business, which was subsequently sold to TotalEnergies for US$7.45bn in 2017, evaded tax in Denmark between 2006 and 2008.

At the centre of the case is the ministry’s claim that between 2006 and 2008, Maersk had provided certain services to its subsidiaries free of charge, which altered its tax status in Denmark.

The Supreme Court had originally ruled in favour of the companies back in March 2022, prompting an appeal from the tax ministry.

The original decision has now been overturned, leaving both Maersk and TotalEnergies with two separate tax bills of $187m. The two companies will also have to pay legal fees and interest that amounts to $1m between them.

In a statement, Maersk said: “While we are surprised with the ruling, it will not have any financial consequences [for Maearsk] since it has already been reflected in our annual tax payments throughout the relevant period to avoid interest payments.”