Supreme Court allows deduction of termination fee paid to foreign company for extraordinary license termination.

The Supreme Court upheld the lower court's decision permitting the appellant to deduct the termination fee from their corporate tax. The appellant argued that the fee paid to a foreign entity for the extraordinary termination of a license and distribution agreement constituted a genuine business expense. The court determined that the payment was directly linked to the appellant's taxable business activities and met the requirements for tax deduction under Danish law.