On 6 April 2006, the Danish parliament enacted bill 116 (L 116) which amends the group definition under the transfer pricing rules so as to include transparent entities. The change has indirectly amended the anti-avoidance rules regarding withholding tax on interest and thin capitalization. After having provided a description of the reason for introducing L 116, this article thoroughly discusses the consequences of its adoption and the subsequent amendments to the group definition under the transfer pricing rules, with particular focus on the implications for private equity funds.