A tax case arises when there is disagreement between a taxpayer (individual or business) and the Danish Tax Agency about the tax treatment of income, deductions, valuation, VAT or other tax matters. The disagreement can concern both factual and legal questions.

A tax case is typically initiated when the taxpayer does not agree with a decision from the Danish Tax Agency. The case can then be processed administratively through reopening or complaint to the Tax Appeals Agency and, as a last resort, be brought before the courts.

A complaint about a tax decision is first submitted to the Danish Tax Agency, which carries out an internal reassessment of the case. If the decision is upheld, the complaint can be forwarded to the Tax Appeals Agency, which, as an independent complaints body, processes the case.

The Tax Appeals Agency can either make a decision itself or forward the case to the National Tax Tribunal, which is the highest administrative complaints body in the tax area.

If the taxpayer still disagrees, the decision can be brought before the courts, typically at district court or high court level, and as a last resort before the Supreme Court.

In tax cases, the burden of proof as a general rule rests with the taxpayer when the case concerns matters that can reduce tax liability, such as deductions or calculation of income. The taxpayer must be able to document their information by means of receipts, accounting material or other relevant documentation. Lack of documentation can result in deductions or relief being denied.

When the Danish Tax Agency increases the taxpayer's income, the burden of proof as a general rule rests with the Danish Tax Agency. The authority must be able to make it probable that the declared income is incorrect or incomplete. If the Danish Tax Agency demonstrates concrete irregularities, however, the burden of proof can be tightened for the taxpayer, who must then make it probable that the income has been calculated correctly.

The taxpayer thus has the burden of proof for matters that reduce the tax, while the Danish Tax Agency has the burden of proof for matters that increase the income.

Many taxpayers choose to seek advice from an auditor, tax adviser or lawyer with specialization in tax law. Advisers can help with preparing complaints, collecting documentation, formulating arguments and representing the taxpayer in contact with the Danish Tax Agency and possibly in court.

For cases brought before the Tax Appeals Agency and higher bodies, you can also apply for costs compensation.