All taxpayers can risk minimum fines if they do not provide the necessary information in time to the tax authorities.
Passive tax avoidance
Tax authorities can levy large fines if the citizen relates passivelywhere information is to be reported to the Tax Administration in the following cases:
- If the income assessment in the following annual statement is too low, the taxpayer must contact the tax administration about the missing information within 4 weeks of receipt of the annual statement. The request can be made by reporting a correction via the tax file.
- If the taxpayer receives a discretionary employment which is too low, the taxpayer must notify the tax administration within four weeks.
- If the taxpayer does not receive an annual statement or an information sheet, the income information must be communicated to the tax administration by 1 May (non-economic operators) or no later than 1 July (for traders and persons with foreign income)
No fines
Fines cannot be levied if an independent reporting person (e.g. an employer or a financial institution) should have reported information and the taxpayer has not been made aware of the missing information by the tax authorities.
Gross negligence
In case of gross negligence, the following amount of fine may be levied:
Small cases under DKK 40,000
In smaller cases where the tax evasion amounts to between DKK 20,000 and DKK 40,000, the fine in the first instance amounts to DKK 5,000.
In cases where the tax evasion exceeds DKK 40,000
The offence occurred before January 1, 2024
In the case of a first-time offence, the fine is calculated at 50% of the amount of tax evaded up to DKK 60,000. After that, the fine amounts to 100% of the amounts evaded.
For example, tax evasion of DKK 100,000:
The fine can be calculated at 50% of DKK 60,000 plus DKK 40,000 in total DKK 70,000.
The offence occurred after January 1, 2024 and before January 15, 2025
Fines of 1/3 of the amount of tax evaded are levied.
For example, tax evasion of DKK 100,000 entails a fine of DKK 33,000.
The offence occurred after January 15, 2025
Fines are levied equal to the amount of tax evaded.
For example, tax evasion of DKK 100,000 entails a fine of DKK 100,000.
Tax evasion with continue
If paragraphs 1), 2) or 3) above are not complied with and there is intentional tax evasion, the guilty party may be punished with a fine or imprisonment of up to 1 year and 6 months, unless a higher penalty is provided for in accordance with Section 289 of the Criminal Code.
Determining the penalty will depend on a concrete assessment. We have only dealt with a fine under the Tax Control Act and not with any penalty under the Penal Code.
Self-review can pay off
In our experience, it is worthwhile to submit a self-report if it is found that incorrect information has been reported in the past or insufficient information has been submitted to the tax administration, thereby charging too little tax.
It is our experience that the common risk of fines upon discovery can be avoided by self-examination. If the self-report comes at a time when the taxpayer has knowledge or a safe presumption of being discovered, the self-report will not normally result in reduced penalty.
Requesting a resumption
Resumption cases at the initiative of the citizen are usually cases in which the taxable citizen has the basis for an amended tax assessment that reduces tax payments. These are typically cases where:
* Mistakes have been made in an already made tax assessment
* The error may be corrected before the regular resumption deadline, which is May 1 of the fourth year following the end of the income year.
If the ordinary reopening deadline cannot be reached, extraordinary resumption may be possible. However, this presupposes very special circumstances, which may be errors on the part of the authorities or, for example, a prolonged course of the disease. Resumption at the initiative of citizens may therefore be limited. The Tax Agency may resume hiring exceptionally if there is at least gross negligence.
We are happy to assist in self-reporting cases or in connection with the resumption of tax assessment to the Tax Administration, so that you avoid fines and ensure that your income assessment is corrected correctly.
Contact Us
If you have questions about the above rules or would like to learn more about how they may affect you or your tax payments, please contact our team of tax experts who are ready to help you!
Feel free to fill out our contact form at the bottom of the page and we will get back to you as soon as possible.
Contact Skatteinform
Call us by phone: 33 32 10 10
Send an email to us at: Info@Skatteinform.dk
Tax Inform
Inge Nilsson WilliamNilsson
Chartered Accountant Cand.Polit/Master in Tax LL.M.
SkatteInform Statsauthorized
Audit partner company
Frederiksborggade 54 1. tv
1360 Copenhagen K
We do not accept responsibility for any dispositions that may be made on the basis of this newsletter without prior individual advice. Likewise, we do not accept responsibility for any errors and omissions.
