- T1 and T2 were charged with serious VAT fraud and withholding tax fraud as the owner and director of a company.
- They were accused of underreporting VAT by 2,210,074 kr. for the period of 01.01.11-30.09.13 and failing to report VAT of 830,968 kr. for the period of 01.10.13-30.06.14.
- They also failed to withhold A-tax and labor market contributions for the period of 01.01.11-30.09.13, resulting in a total evasion of 3,041,042 kr. in VAT, 4,024,645 kr. in A-tax, and 682,546 kr. in labor market contributions.
- The company was undergoing bankruptcy proceedings and its accounting material was lost.
- The case started when large cash withdrawals and transfers to private accounts were observed in the company’s business account.
- T1 and T2 argued that it would be legally problematic to convict based on the tax authorities’ estimated calculations.
- The district court found T1 and T2 guilty of VAT fraud but acquitted them of withholding tax fraud due to lack of evidence of undeclared wages in the company.
- T2 was also convicted of tax fraud for the years 2011-13.
- The court accepted the tax authorities’ estimated calculations, considering them thorough and reliable, and took into account objections and adjustments made after the tax authorities’ decision.
- T1 was sentenced to 1 year of conditional imprisonment with community service and a supplementary fine of 2,940,000 kr.
- T2 was sentenced to 2 years of imprisonment and a supplementary fine of 7,430,000 kr.
- The appellate court upheld the district court’s verdict.
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.
