Criminal tax fraud VAT fraud – unregistered company

T was charged with VAT fraud for a number of periods in 2013, 2014 and 2015 as well as tax fraud for the income years 2013 and 2014. T had run an unregistered VAT-liable business and issued invoices with VAT without stating and settling VAT to the customs and tax administration and failed within 4 weeks after receipt of the annual statements for 2013 and 2014 to state that they were low, as profits of the company were not taxed. T had thereby evaded DKK 469,680 in tax and DKK 398,321 VAT in total.

T denied that the VAT and tax evasion could be attributed to him as intentional, but did not deny that he issued invoices with VAT without being VAT registered and that he failed to tax the income from the work honored upon receipt of payment under to the invoices. T explained that he had inserted his holding company’s CVR number in the invoices in question in the period 2013-15 because he could not use his company’s CVR number after 2012.

The city court found T guilty of intentional tax and VAT fraud. The court held that T was fully aware that his business was deregistered from VAT and that he realized that he was evading VAT when, despite this, he was collecting VAT from a customer. The court thus referred to T’s explanation of the case and the documentation that T was previously VAT registered and the company made VAT declarations several times. Furthermore, the court found that T realized that by his lack of information on the revenue from the customers’ payment under the invoices, he evaded tax.

He was sentenced to 7 months’ imprisonment conditional on conditions of community service and an additional fine of DKK 850,000. the period of the offense.

The district court upheld the city court ruling.

Source: skat.dk

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