Danish Court Allows Extraordinary VAT Reassessment for Airline’s Gross Negligence in Tax Deductions

• The taxpayer, an airline, used incorrect fixed percentages to reduce input VAT on shared costs instead of the required annual pro rata rates.
• The taxpayer wrongly claimed full deductions for energy taxes, which is not allowed under the VAT Act.
• The Tax Agency determined the taxpayer acted negligently by not making mandatory year-end VAT adjustments and understating VAT liability.
• The National Tax Court found repeated errors and lack of adjustments constituted gross negligence, justifying extraordinary reassessment.

Source: news.bloombergtax.com

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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