SHARE
COPY LINK

TAXES

Danish tax commission begins interviews in major investigation

A commission assigned to investigate a 15-year period of controversies at Denmark's tax authority is set to begin the lengthy process of interviewing witnesses.

Danish tax commission begins interviews in major investigation
File photo: ERIK REFNER/Ritzau Scanpix

Up to 106 different people will be interviewed by the commission, officially named Undersøgelseskommissionen om Skat (Commission for Investigation of the Danish Tax Authority) which is set to be ongoing until December 19th this year.

The primary task of the commission is to uncover what went wrong with a scandal-hit and now scrapped system for tax collection known as EFI.

But the work of the investigative commission was in 2018 expanded to examine where responsibility lies for tax refunds which cost the state 12.7 billion kroner.

Former and current employees at the Ministry of Taxation and the Tax Authority, and the roles played by relevant ministers in the cases, will be scrutinised by the commission.

The first four people are scheduled to be interviewed by the commission on Tuesday.

Last of the scheduled interviewees is current tax minister Karsten Lauritzen, who is scheduled to provide statements in November and December. Former ministers for the area Troels Lund Poulsen, Peter Christensen, Thor Möger Pedersen, Holger K. Nielsen, Jonas Dahl, Morten Østergaard and Benny Engelbrecht will also speak to the commission.

The tax commission was established in July 2017 after a series of scandals, and has since criticised both the Ministry of Taxation and the Tax Authority for causing delays to its work.

In its criticism, the commission cited difficulty in securing requested documentation from the ministry and tax authority.

In December last year, the Ministry of Taxation submitted 576 ringbinders of documentation to the commission, which is now reported to have been submitted a total of 2,559 such files.

READ ALSO: After years of scandals, here's how Denmark's reformed tax authority will look

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.
For members

TAXES

Beskæftigelsesfradraget: What is Denmark’s employment allowance?

Denmark's government may soon announce changes to its tax reform plans, which will give all wage earners a bigger employment allowance. What is this and how will it affect foreigners' earnings?

Beskæftigelsesfradraget: What is Denmark's employment allowance?

What is the employment allowance? 

The Beskæftigelsesfradraget (from beskæftigelse, meaning employment, and fradrag, meaning rebate) was brought in by the centre-right Liberal Party back in 2004, the idea being that it would incentivise people to get off welfare and into a job.

Everyone whose employer pays Denmark’s 8 percent AM-bidrag, or arbejdsmarkedsbidrag, automatically receives beskæftigelsesfradraget. Unlike with some of Denmark’s tax rebates, there is no need to apply. The Danish Tax Agency simply exempts the first portion of your earnings from income taxes. 

In 2022, beskæftigelsesfradraget was set at 10.65 percent of income with a maximum rebate of 44,800 kroner. 

How did the government agree to change the employment allowance in its coalition deal? 

In Responsibility for Denmark, the coalition agreement between the Social Democrats, the Liberals and the Moderate Party, the new government said it would set aside 5 billion kroner for tax reforms.

Of this, 4 billion kroner was earmarked for increasing the employment allowance, with a further 0.3 billion going towards increasing an additional employment allowance for single parents.

According to the public broadcaster DR, the expectation was that this would increase the standard employment  allowance to 12.75 percent up to a maximum rebate of 53,600 kroner. 

How might this be further increased, according to Børsen? 

According to a report in the Børsen newspaper, the government now plans to set aside a further 1.75 billion kroner for tax reforms, of which nearly half — about 800 million kroner — will go towards a further increase to the employment allowance. 

The Danish Chamber of Commerce earlier this month released an analysis in which it argued that by raising removing all limits on the rebate for single parents and raising the maximum rebate for everone else by 20,300 kroner, the government could increase the labour supply by 4,850 people, more than double the 1,500 envisaged in the government agreement. 

According to the Børsen, the government estimates that its new extended allowance will increase the labour supply by 5,150 people.  

SHOW COMMENTS