- The Østre Landsret has ruled that a couple, T1 and T2, underreported VAT for their hotel and restaurant businesses.
- The couple gave the impression that customers paid separately for the rental of rooms, which is a VAT-free service, but in reality, customers only received one invoice with 25% VAT on the total amount.
- T1 and T2 were charged with intentionally evading VAT as owners, directors, and responsible daily managers of G1, G2, and G3.
- The total amount of VAT evaded was 7,519,491 DKK.
- The prosecution requested a 2-year prison sentence and a fine of 7,500,000 DKK for the couple.
- The court found the couple guilty and sentenced T1 to 1 year and 9 months of conditional imprisonment and a fine of 3,750,000 DKK. T2 was sentenced to 2 years of conditional imprisonment and a fine of 3,750,000 DKK.
- The court considered the magnitude and systematic nature of the VAT evasion and the duration of the offenses in determining the sentences.
- The Eastern High Court upheld the guilty verdict for T2 but reduced the amount of VAT evasion to at least 6,000,000 DKK.
- T2 was sentenced to a fine equal to the VAT evasion of 6,000,000 DKK.
- T1 was found guilty of gross negligence in two instances and was fined 900,000 DKK.
- The fines were reduced due to the time elapsed since the offenses were committed and the lengthy processing time of the case.
Source: info.skat.dk
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
