Won at the Tax Appeals Board

The Tax Agency’s claims

The Danish Tax Agency asserted:

• That the valuation of the property was too low
• That the client had acted with gross negligence

Our documentation

We were able to document that our client had done exactly what he could at the time:

• Professional advice was obtained
• Valuations from real estate agents were collected

The Tax Agency’s error

We demonstrated that the Danish Tax Agency had not applied the then-current practice for determining the value of the property. This was decisive for the case.

The decision from the Tax Appeals Board

The Tax Appeals Board ruled in our favor on all points:

• The client had not acted with gross negligence
• He had sought and followed professional advice
• The valuations from real estate agents could be relied upon
• The entire increase was reduced

What can we learn from this case?

For majority shareholders:

When transferring property between your company and yourself, correct valuation is crucial. Always seek professional advice.

For anyone with tax cases:

Even when you have done everything right, the Danish Tax Agency can make incorrect decisions. This does not mean that you have to accept them.

The importance of documentation:

This case shows how crucial it is to be able to document that you have sought professional advice – and that the authorities must follow their own practice.

Do you have a similar case?

Are you in a situation with:

• Transfer of property between company and majority shareholder
• Dispute about valuation
• The Tax Agency’s claim of gross negligence

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