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BUSINESS

Danish shipping giant Maersk ‘lobbied’ to be excluded from global tax deal

The Danish shipping giant Maersk held meetings with Denmark's tax and maritime authorities to advise them on how best to shield the shipping industry from the OECD's global minimum tax deal, according to a Danish media report.

Danish shipping giant Maersk 'lobbied' to be excluded from global tax deal
Shipping giant Maersk may have lobbied to be excluded from a global tax deal according to reports in Denmark. File photo: Amr Abdallah Dalsh/Reuters/Ritzau Scanpix

The revelations, reported by broadcaster DR, come as the company on Wednesday reported record profits of 203 billion kroner, on which it paid just 3 percent in tax. 

They are particularly damaging to the company because of the claim last year from Maersk’s then CEO Søren Skou that his company was open to paying more tax, so long as it was through a global agreement via the OECD, precisely the sort of agreement the company was behind the scenes trying to exclude itself from. 

“It seems as if Maersk is playing a double game,” Lars Koch from the poverty charity Oxfam, told DR after he was presented with the evidence. 

“We can see from the access to documents the number of meetings and close and confidential dialogue”, he added. “Here they agree and inform each other about what Denmark should argue in these international negotiations on a tax agreement and they work actively to safeguard Maersk’s interests by exempting the shipping companies.” 

The broadcaster report was based on internal documents obtained from the Ministry of Taxation and the Danish Maritime Authority. 

The documents show that in June 2020, representatives of the company held a meeting with the Ministry of Taxation in which they they discussed strategies on excluding shipping from the OECD agreement on minimum tax. 

Soon afterwards, the industry lobby group Danish Shipping (Danske Rederier), where Maersk plays a leading role, wrote to the Ministry of Taxation and the Danish Maritime Authority warning that the OECD proposal “creates considerable uncertainty in our hinterland”.

Then in June 2021, a representative from ​the Danish Maritime Authority thanked Danish Shipping for supplying it with arguments it could use to push for shipping to be excluded, saying, “it was extremely well done. A thousand thanks for your efforts.”

Finally, when shipping was exempted from the OECD agreement in July 2021, a representative from Danish Shipping thanked the Danish Maritime Authority for “the orientation and for being aware of the special challenges of shipping”. 

Mette Mellemgaard Jakobsen, Maersk’s head of tax, admitted that her company had tried to influence the process.

“We were specifically concerned about how these rules would be implemented, and we had a concrete concern that it would create an increased distortion of competition,” she told DR. 

“For us, it is absolutely crucial that we are not put at a disadvantage compared to other shipping companies around the world. That is why global agreements are the most important thing for us.”

Rasmus Corlin Christensen, a researcher in international tax at Copenhagen Business School, said that Maersk’s double game was quite “striking”.

“On the one hand, you support and work for global solutions, the shipping industry included. But at the same time you can see that, at least when it comes to the global reforms that have been discussed in recent years, they did not want the shipping industry to be covered.” 

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ECONOMY

Danish central bank raises interest rate by 0.5 percent 

Denmark’s central bank Nationalbanken raised its interest rate by 0.5 percent on Thursday in response to a similar move by the European Central Bank (ECB).

Danish central bank raises interest rate by 0.5 percent 

The Danish central bank confirmed the decision in a statement after the ECB earlier on Thursday increased its rate by the same amount, bringing it up to 3 percent.

The latest raise is the sixth time within the last year that the ECB has put its interest rate up.

The new rate is the highest set by the ECB since the Global Financial Crisis in 2008.

The Danish National Bank’s interest rates are slightly lower than the ECB’s — 2.6 percent for deposits and 2.75 percent for loans following Thursday’s increases. That is because Nationalbanken increased its interest rates by 0.15 percent less than the ECB the last time the rates were raised, at the start of February. Similarly, it raised its rate by slightly less than the ECB in December.

There is nothing unusual about the Danish central bank’s decision to follow the ECB in raising the interest rate, however.

Earlier this week, Nationalbanken called for political measures to keep a rein on inflation as it said wage increases given to people under the Danish labour system in 2023 and 2024 could help to keep inflation levels up.

It also predicted house prices are set to fall by almost 10 percent this year.

One effect of raised interest rates is that people who have variable rate mortgages could find themselves paying more for their loans.

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