Executive order No. 895 of 21 September 2000 on the calculation of turnover in the Competition Act
The Competition Authority
Ministry of Economic and Business Affairs
Calculation of turnover in the Competition ActExecutive order No. 895 of 21 September 2000 (historic)
(Courtesy translation. Only the Danish text is authentic)
The following rules are laid down in pursuance of section 7 (4) and (5) and section 12 (4) of the Competition Act, cf. Consolidated Competition Act no. 687 of 12 July 2000:
Turnover
1.- (1) Under this executive order, "turnover" shall mean the net turnover derived from the sale of products and the provision of services falling within the undertakings’ ordinary activities after deduction of value added tax and other taxes directly related to sales, cf., however, sections 7-9.
(2) The aggregate turnover of an undertaking concerned, cf. section 7 (1) or section 12 (1) of the Competition Act, shall be calculated as the turnover derived in the preceding accounting year, cf., however, sections 7-9 below.
(3) Under section 7 (1) or the first part of section 12 (1) (i) of the Competition Act, the turnover shall be calculated by adding together the respective turnovers of the undertakings concerned.
(4) If part of one or more of the undertakings concerned has been realised after the closing of the preceding accounting year, that part of the turnover which is ascribable to the realisation shall be deducted from the turnover of the undertaking concerned. If an undertaking has acquired control of assets after the closing of the preceding accounting year, the turnover ascribable to such assets shall be added to the turnover of the undertaking concerned.
Group turnover
2.- (1) The turnover of an undertaking concerned shall also comprise the turnover of associated undertakings, cf. section 3. An undertaking concerned or an associated undertaking may also be a central, local or regional authority, or a municipal partnership, cf. section 9.
(2) The turnover of an undertaking concerned shall not include the turnover derived from the sale of products and the provision of services between the undertaking concerned and its associated undertakings or between the associated undertakings.
3.- (1) "Associated undertakings" shall mean:
i. Subsidiaries, i.e. undertakings etc. in which an undertaking concerned, directly or indirectly, has the power to exercise controlling interest pursuant to section 2 of the Danish Companies Act.
ii. Parent companies, i.e. undertakings etc. which have the power to exercise controlling interest in an undertaking concerned.
iii. Other undertakings in which a parent company has the power to exercise controlling interest.
iv. Undertakings in which several undertakings etc. as referred to in (i) – (iii) jointly have the power to exercise controlling interest.
v. Other undertakings than referred to in (i) – (iv), which are subject to joint management etc. as referred to in section 4 of executive order no. 1029 of 17 December 1997 on agreements made within the same undertaking or group.
4.- (1) Where two or more undertakings concerned either jointly or one or more of the undertakings concerned together with a third party exercise controlling interest in another undertaking (joint venture), cf. section 12a (1) (ii) of the Competition Act, the turnover of the joint venture shall be included in the turnover of each of the undertakings concerned in proportion to their interests in the joint venture.
(2) Turnover within the meaning of subsection (1) does not include the turnover derived from the sale of products and the provision of services between the joint venture and each of the undertakings concerned or an undertaking associated with any one of them.
Other turnover
5.- (1) Where an undertaking concerned has made similar agreements with other undertakings, the turnover of these undertakings shall, pursuant to section 7 (1) of the Competition Act, be included in the aggregate turnover.
(2) The aggregate turnover shall not include turnover derived from the sale of products and the provision of services between the undertakings as referred to in subsection (1).
Trade associations etc.
6.- (1) Pursuant to section 7 (1) of the Competition Act, the turnover of a trade association or another comparable association shall be calculated as the total turnover of the members of the association plus the association’s own turnover.
(2) The turnover of an association under subsection (1) shall not include the turnover derived from the sale of products and the provision of services between the members of the association and between the association and its members.
Financial undertakings
7.- (1) For insurance companies, turnover shall be replaced by the value of the gross premiums written, which shall comprise all amounts received and receivable in respect of insurance contracts issued by or on behalf of these companies, including outgoing reinsurance premiums, and after deduction of taxes or parafiscal levies charged by reference to the amount of individual premium or the total insurance amount.
8.- (1) For credit institutions and other financial undertakings, turnover shall be replaced by the sum of the following income items, after deduction of value added tax and other taxes directly related to those items, where appropriate:
i. Interest income etc.ii. Income from shares etc. and other participating interests.iii. Fees and commissions receivable etc.iv. Aggregate positive income from value adjustments.v. Other ordinary operating income.
(2) For undertakings subject to executive order no. 10991 of 18 February 1999 on accounting procedures etc. for commercial and savings banks and certain credit institutions, the income items referred to in subsection (1) shall be calculated in accordance with section 43, sections 45-46 and sections 48-49 of that executive order.
(3) For undertakings subject to executive order no. 10992 of 14 December 1999 on accounting procedures etc. for mortgage-credit institutes and mortgage-credit groups, the income items referred to in subsection (1) shall be calculated in accordance with section 40, sections 42-43 and sections 45-46 of that executive order.
(4) For undertakings subject to executive order no.10002 of 10 January 1996 on accounting procedures for investment companies, the income items referred to in subsection (1) shall be calculated in accordance with section 9, 1st sentence, 3rd-4th sentences and 6th-7th sentences of that executive order.
Central, local and regional authorities
9.- (1) For central authorities, turnover shall be replaced by the aggregate gross operational and investment expenditure in the preceding accounting year of the ministerial province concerned, cf. the principal sections 1 and 3 of the central government chart of accounts.
(2) For a local or regional authority turnover shall be replaced the aggregate gross operational and investment expenditure in the preceding accounting year, cf. the principal sections 1-2 and 4 of the local government chart of accounts.
(3) Subsection (2) shall apply equally to municipal partnerships as referred to in section 60 of the Local Government Act. However, subsection (2) shall not apply if the municipal partnership presents accounts under the Danish Company Accounts Act. In that case, section 1 shall apply.
Turnover in Denmark
10. The turnover in Denmark, cf. section 12 (1) of the Competition Act, shall comprise the sale of products and provision of services to customers who are resident in Denmark at the time when the agreement was made.
Conversion of turnover into DKK
11. Turnover in foreign currency shall be converted into DKK on the basis of the average rate of exchange during the preceding accounting year of the undertaking concerned.
Exceeding the turnover and market-share thresholds
12.- (1) The exemption of section 7 (1) of the Competition Act from the prohibition laid down in section 6 (1) of the Act shall apply even if the undertakings concerned exceed the said turnover and market-share thresholds by not more than a tenth in two consecutive accounting years.
(2) The provision laid down in subsection (1) shall not apply if the said turnover and market-share thresholds are exceeded as consequence of a merger, cf. section 12a (1) of the Competition Act.
Commencement
13.- (1) This executive order shall come into force on 1 October 2000
(2) Executive order no. 1030 of 17 December 1997 on calculation of turnover etc. in section 7 (1) of the Competition Act shall be repealed.