Summary: On September 19, 2023, the Eastern High Court (Østre Landsret) issued a verdict in a tax evasion case involving the defendant, referred to as “T.” T had been accused of providing false information for tax control purposes between January 1, 2015, and March 31, 2015, as well as unlawfully receiving funds related to criminal activities in April 2020. Specifically, T had declared erroneous VAT amounts for his company, resulting in a tax evasion of DKK 9,779,203. Additionally, he had received funds in his bank account, allegedly obtained through illegal activities.
T claimed innocence, stating that he had allowed another person to use his identity and personal documents to set up the company, and he had been coerced by this person, who had criminal connections and a cocaine addiction. T had initially agreed to the company setup without fully understanding its purpose, and he intended to use it to reclaim VAT for music instrument purchases. However, he later noticed a lack of funds in his bank account, suspected the third party’s involvement, and received a letter from the tax authorities regarding negative VAT reports, which he did not address.
The court found T guilty of the first charge related to tax evasion, reasoning that T had knowingly accepted the risk and consented to the setup of the company under his name. He was sentenced to a 2½-year suspended prison term and a fine of DKK 2,500,000. However, T was acquitted of the other charges due to insufficient evidence.
T appealed the verdict, seeking acquittal or a reduced sentence. The prosecution requested confirmation of the initial verdict or, alternatively, a conviction for gross negligence under the tax law. Ultimately, the High Court acquitted T of all charges. The court found no evidence that T had taken actions directed at carrying out the tax evasion, such as submitting tax returns, providing documentation, or engaging in correspondence with tax authorities. Furthermore, it was not proven that T had spoken with tax authority personnel. Considering T’s explanations, life circumstances during the relevant period, his relationship with the third party, and his lack of knowledge about the company’s activities, the court concluded that there was no evidence of intent or gross negligence on T’s part regarding the tax evasion offense. Additionally, T was not found to have contributed to any tax law violations when he provided his passport and ID to the third party for the company’s registration.
Source: info.skat.dk
Sponsors:
