Tax Litigation in Denmark
Tax Litigation in DenmarkUpdated on Friday 03rd March 2023
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All companies and individuals in Denmark are liable to taxation, as per the Corporation Tax Act and the Personal Tax Act. In those cases where there is a dispute between the policies of the tax authorities and the debt or the obligations of the taxpayer, the said taxpayer may request specialized services for tax litigation in Denmark.
The experts at our Danish law firm can offer legal assistance and representation in cases that are based on an inaccurate or excessive assessment for taxation, as well as many other types of situations that imply wrongful taxation matters.
Types of tax litigation
Our law firm in Denmark has extensive experience in matters related to tax law and our litigators have solved a number of cases for small and large companies alike. Examples of cases include the following:
• transfer pricing: this is a common source of tax litigation in Denmark and it concerns the rules and regulations for pricing transactions between Danish companies.
• VAT exempt payment transactions: according to EU laws and internal laws, some payment services can be VAT exempt; tax litigation arises when these exemptions are not applied.
• the right to deduct losses: companies can reduce their taxable income by deducting capital losses; there are cases where the Tax Authorities do not allow for this in case of subsidiaries or branches.
• beneficial owner cases: concerns those cases against Danish branches/subsidiaries that distribute dividends to their parent company in the EU or in other states with which Denmark has signed a double tax treaty.
The characteristics of a tax litigation case
Tax cases have an important particularity that concerns the plaintiff or in this case, the taxpayer who denounces incorrect taxation practices. The burden of proof falls onto the plaintiff, meaning that he is the one who will need to prove, based on sufficient and satisfactory evidence, that the tax assessment is either incorrect or excessive or that he has been wronged in some other way by the tax authorities.
This is the most important reasons why it is important to see proper legal aid before commencing any legal actions against the said tax authorities. Our team of lawyers in Denmark are up to date with the latest fiscal changes and can help you challenge unjust or incorrect tax returns. We can also help with complete counseling sessions for any issues that may concern the Danish tax laws in general.
Please contact our Danish law firm for a complete offer of our services.
Working with a team of certified accountants from the very beginning can mean that a company will about unnecessary tax disputes or problems, and, as such, will avoid tax litigation in Denmark. When working with our Danish accountants, you will receive services focused on bookkeeping, annual financial reporting, payroll, tax payment and tax filing, and much more.