We can make a difference for you with foreign income – the Danish Tax Agency is collecting illegal taxes.

On behalf of our customers with foreign income, we have complained to the Head of Legal Security at the Danish Tax Agency about the very slow case processing, which has led to the Danish Tax Agency withholding or collecting illegal taxes. The Danish Tax Agency has partly given us an apology and in addition they are now working on the cases and on improving their business procedures.

 

We can also make a difference for you.

 

In several cases for 2020, we have found that the Danish Tax Agency's very slow case processing entails illegally collected taxes and in addition imposes large extra costs on customers. On behalf of these customers, we have complained to the Head of Legal Security for the Tax Administration.

 

Follow the cases below, which we have described briefly:

 

Tax Return filed in time:

The taxpayer has filed a tax return well ahead of the tax return deadline but receives an annual statement in which the reported information is not registered to the Danish Tax Agency. The taxpayer is therefore charged a very large amount in illegal tax, which is attempted to be collected by SKAT via the National Debt Management Agency.

Response from the Danish Tax Agency: We have received a very rarely seen apology from the Danish Tax Agency in this case.

 

The Researcher Tax Scheme:

In another case, the Danish Tax Agency has been 19 months (two tax 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 Agency, the Danish Tax Agency collects a much higher ordinary tax rate than the tax rate that applies to researchers and other high-paid employees who have moved to Denmark to work.

Response from the Danish Tax Agency: (will be published here as soon as it is available)

 

Tax Return filed in time and deferral of payment of tax:

In this case, the taxpayer has submitted information to the Danish Tax Agency in a timely manner. The Danish Tax Agency has issued an annual statement without taking into account the submitted information. The Danish Tax Agency collects the tax illegally. We obtain a deferral from the Danish Tax Agency with payment of the illegally collected tax, as the Danish Tax Agency considers the timely submitted information to be a complaint.

Response from the Danish Tax Agency: (will be published here as soon as it is available)

 

Relief under The Tax Assessment Act (Ligningsloven) §33A

The taxpayer has worked abroad and is therefore entitled to foreign facilitation as of L § 33A. The Danish Tax Agency retains withhold taxes held back by the Danish employer. The Danish Tax Agency's business process means that the taxpayer must finance the tax payment to two countries of the same income, on the grounds that the taxpayer cannot document that he has already paid foreign tax on the Danish income, until the Danish Tax Agency finds it convenient to process the case and pay the overpaid tax. This is illegal withholding tax.

Response from the Danish Tax Agency: (will be published here as soon as it is available)

 

Tax Return filed in time and reminder letters from the Danish Tax Agency

The Danish Tax Agency sends reminders for non-declaration of tax with a threat of tax surcharge - regardless of the fact that the information form has been submitted to the Danish Tax Agency in time. We make the Danish Tax Agency aware of problems, but they do not process the case. Following the complaint to the head of legal certainty, the Danish Tax Agency will contact us within 2 weeks.

Response from the Danish Tax Agency: (will be published here as soon as it is available)

 

We follow all the cases and will provide the Danish Tax Agency's answers as soon as we receive them.

Therefore remember to look again and read the answers from the Danish Tax Agency.