Interest allowance – Interruption of the payment deadline for negative VAT – Risk of tax loss

The case concerned whether the company was entitled to interest compensation as a result of the Tax Agency’s failure to comply with the payment deadline, cf. section 12 of the Collection Act. 2, 1st point

For the 4th quarter of 2014 and the 1st half of 2015, the National Tax Court found that the company had not timely declared the negative VAT, which is why the provisions of section 12, subsection of the Collection Act. 2 and par. 3, did not apply. The Tax Agency had therefore been entitled to check the declaration before payment took place.

For the second half of 2015, the National Tax Court found that the Tax Agency had proved that there was an imminent risk of tax loss, cf. section 12 of the Collection Act. 3, 2nd point The Tax Agency had thus been entitled to interrupt the deadline in section 12, subsection of the Collection Act. 2, 1st point, which is why the company was not entitled to interest compensation.

For the 1st and 2nd half of 2016, the National Tax Court found that the Tax Agency had not been entitled to interrupt the deadline, cf. Section 12, subsection of the Collection Act. 2, 1st point, since the conditions in subsection 3 was not present. The company was therefore basically entitled to interest compensation. However, the National Tax Court found that an interest refund could only be awarded in connection with unjustified withholding of negative VAT, to the extent that the negative VAT declaration was materially correct. The company was therefore not entitled to interest compensation.

Source: skat.dk

---

---