Extraordinary reopening of VAT response in dissolved partnership

• The case involves whether it was justified for the Tax Authority to not consider a lawyer’s request to reopen the VAT returns for a dissolved partnership.
• The Tax Authority did not receive authorization from all nine former partners to request the reopening.
• The question is whether the Tax Authority’s decision not to consider the request is an administrative decision that can be appealed.
• The National Tax Tribunal found that the Tax Authority’s decision not to consider the request for reopening was an administrative decision that can be appealed.
• In terms of VAT, a partnership is a separate taxable entity, and a dissolved partnership no longer exists as a separate legal entity.
• The National Tax Tribunal found that five former partners, including the complainant, were entitled to have their request for reopening considered and ordered the Tax Authority to consider the request.
• The intention is for a company’s VAT returns to be corrected to reflect the correct amount, as long as the conditions in the tax administration law are met.
• The former partners who did not authorize the lawyer had no valid reason to oppose the request, as it was assumed that the Tax Authority’s treatment of the request to reduce the VAT returns would not result in an increase in the returns.

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.

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