Taxand Denmark discusses the reintroduction of compensation for tax case expenses.
On 15 December 2016, the Danish parliament adopted an amendment to the Danish Tax Administration Act as part of the implementation of Legal Rights Package II (Retssikkerhedspakke II), the purpose of which is to improve legal rights in the tax area and restore confidence in the Danish tax authorities, SKAT. The amendment reintroduces compensation to companies and foundations for expenses incurred in connection with cases concerning taxes or duties as well as a tightening of the Dan-ish Ombudsman’s reviewing of SKAT.
The possibility of being compensated for expenses was abolished for tax liable companies and foundations in 2009. The abolishment was criticised, particularly by advisors, for weakening the legal protection of companies and foundations in relation to SKAT.
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It has been decided to establish a tax desk with the Ombudsman to ensure intensified reviewing and strengthening of the tax area. Until now, the Ombudsman appears to have been reluctant to enter the tax area. With the establishment of the tax desk, the Parliamentary Ombudsman’s focus on the tax area will increase, and hopefully the new provisions regarding time limits will intensify the Ombudsman’s reviewing of this area.
