We make a difference for you with foreign income — the danish Tax Agency collects illegal taxes.
On behalf of our clients with foreign income, we have complained to the Head of Legal Security at the Tax Agency about the very slow processing of cases, which has resulted in the Tax Agency withholding or collecting illegal taxes. The Danish Tax Authorities has partly given us an apology and, in addition, they are now working on the cases and on improving their business practices.
We can also make a difference for you.
We have found in a number of cases for 2020 that the Danish Tax Authorities very slow handling of cases results in illegally collected taxes and thus inflicts customers large additional expenses. We have complained on behalf of these customers Head of Legal Security for the Tax Administration.
Stay tuned for the following cases, which we briefly describe below:
Timely tax return:
The taxpayer has self-declared well in advance of the tax return deadline, but receives an annual statement in which the submitted information is not recorded on the annual statement. Taxpayers are therefore charged a very large amount in illegal taxes, which are attempted to be collected by the Skattestyrelsen via the Danish Debt Agency.
Response from Skattestyrelsen: We have received a very rare apology from the Tax Agency in this matter.
Researcher tax scheme:
In another case, the Danish Tax Authorities has had 19 months (two income years) to process an application for taxation under the researcher tax scheme. As long as the employment contract has not been approved by the Danish Tax Authorities, the Tax Agency charges at the usual tax rates than the tax rate applicable to researchers and other highly paid employees who have moved to Denmark to work.
Reply from the Danish Tax Agency: (to be published here as soon as it comes)
Timely tax return and deferral of payment of tax:
In this case, the taxpayer has timely submitted information to the Tax Agency. The Danish Tax Agency has issued an annual statement without taking into account the information submitted. The Tax Agency collects the tax illegal. We obtain a waiver from the Skattestyrelsen with payment of the illegally collected tax, as the Skattestyrelsen considers the timely submitted information to constitute a complaint.
Reply from the Danish Tax Agency: (to be published here as soon as it comes)
Relief under the Equation Act §33A
Taxpayer has worked abroad and is eligible for relief abroad pursuant to L § 33A. The Danish Tax Agency withholds the withholding taxes contained by the Danish employer. The Tax Agency requires the taxpayer to document the tax paid abroad before they want to print an annual statement. The Danish Tax Authorities course of business means that the taxpayer must finance the tax payment to two countries on the same income on the grounds that the taxpayer cannot prove that he has paid foreign tax on the Danish income until the Tax Agency considers it convenient to deal with the case and pay the overpaid tax. This is illegal tax withholding.
Reply from the Danish Tax Agency: (to be published here as soon as it comes)
Timely tax returns and withdrawal letters from the Tax Agency
The Tax Agency issues a complaint for failure to file a tax return with the threat of a tax surcharge — regardless of the fact that the information form has been submitted to the Tax Agency in a timely manner. We bring the matter to the attention of the Tax Agency, but they do not deal with the matter. Following the complaint to the head of legal security, the Danish Tax Authorities will contact us within 2 weeks.
Reply from the Danish Tax Agency: (to be published here as soon as it comes)
We follow all the cases and will provide the Tax Agency's answers here as soon as we receive them.
Then look back and read responses from the Tax Agency.