When a case involving taxes, VAT, and duties becomes a criminal case.
Authority of the Danish Tax Agency
When the Danish Tax Agency has issued a decision that alters a tax assessment or a VAT/duties liability assessment (hereafter referred to as a “tax case” for the sake of simplicity) … is the case then over and done with as far as the Agency is concerned?
This will depend on whether the Danish Tax Agency determines that a violation of legislation pertaining to taxes, VAT, or duties has occurred.
If the Danish Tax Agency believes that an offence has been committed, either through gross negligence or deliberate evasion, a punitive measure may be invoked.
The Danish Tax Agency has authority in all criminal cases in which it believes gross negligence to have been involved.
If the Agency believes that deliberate tax evasion is involved, it has authority to deal with the criminal case only when the amount of evasion does not exceed:
- DKK 250,000 for violations of tax legislation, the VAT Act, the Labour Market Contributions Act, and the Payroll Tax Act
- DKK 100,000 in violations of excise duty laws
If the deliberate evasion exceeds these amounts, the Agency must refer the case to the Police. Any ensuing criminal case will be decided by the courts.
The Danish Tax Agency may issue penalties only in the form of fines and may do so only if the company/individual accepts them. If the fine is disputed, the company or individual is are entitled to have the penalty assessed by the courts.