Tax Case Number
SKM2023.359.BR
Case Number
BS-9036/2022-ROS
The case concerned whether there was a basis for setting aside the tax authorities’ estimated increases of the taxpayer’s tax and VAT assessments and whether there was a basis for an extraordinary reopening of the taxpayer’s VAT assessment. The case also concerned whether there was a basis for setting aside the tax authorities’ collection of additional A-tax and AM contributions, whether the A-tax and AM contribution claim was statute-barred, and whether the Danish Tax Agency’s decision lacked grounds regarding the statute of limitations issue.
The court found that the taxpayer had not provided sufficient evidence that the Danish Tax Agency’s estimation had been carried out on an incorrect basis or had led to a manifestly unreasonable outcome. Therefore, there was no basis to set aside the Danish Tax Agency’s increases of the taxpayer’s taxable income and VAT liability. The court found that the conditions for an extraordinary reopening were met, and that the reaction period of 6 months had been adhered to. The reaction period started from the moment the Danish Tax Agency received the last material on July 18, 2019, regardless of the fact that the material did not contain information that formed the basis for the increase in the VAT liability.
Furthermore, the court found that the Danish Tax Agency’s estimation regarding additional wages had not been carried out on an incorrect basis or resulted in a manifestly unreasonable outcome. Therefore, the court found that it was the taxpayer’s responsibility to withhold A-tax and AM contributions, as the taxpayer had not demonstrated that they had not been negligent in neglecting their withholding obligations.
The court also found that the statute of limitations for the claim of A-tax and AM contributions began to run at the earliest on July 18, 2019, when the Danish Tax Agency became aware of the full claim against the taxpayer. Therefore, the court found that the statute of limitations had not occurred, and since the taxpayer had not invoked the statute of limitations before the Danish Tax Agency’s decision, the court also found that the Danish Tax Agency was not required to provide reasoning on this matter in its decision.
As a result, the Danish Ministry of Taxation was acquitted.
Source: skat.dk
