Appealing the Danish Tax Agency, from the Tax Appeals Agency to the National Tax Tribunal

The Danish Tax Agency typically first sends a proposed assessment, also known as a notice of intent. This is the agency's preliminary view of the case, and you have a deadline to submit comments before a final decision is made.

This is an important distinction. At the proposal stage, the case has not yet been decided, and thorough comments and documentation can in some cases lead to the increase being dropped or reduced without any need to appeal at all.

Once the final decision has been made, the case changes character: it must be appealed within a fixed deadline and pursued through a formal appeal system. Our experience is that this early stage is often underestimated. The sooner the facts and documentation of the case are in place, the stronger your position.

An appeal against a decision from the Danish Tax Agency must generally be filed within three months from the date of the decision. If the deadline is missed, the appeal can be rejected regardless of how strong the case is on the merits. There is a possibility of disregarding a missed deadline, but this is an exception, not something to rely on.

Deadlines also matter the other way around. The Danish Tax Agency itself is bound by time limits on how far back an assessment can be reopened, and by a reaction deadline when an extraordinary reopening must be justified. These rules are not mere formalities; they can be the very reason an increase is set aside.

In practice this means: note the date of the decision, and have the case assessed well before the deadline expires, not in the final week.

The appeal is filed in one place, via the Tax Appeals Agency, but is not necessarily decided there. Which body makes the decision depends on the type of case.

The Tax Appeals Agency receives the appeal, prepares the case, obtains a statement from the Danish Tax Agency and drafts a case summary with a recommended decision. In a number of cases, the Tax Appeals Agency itself makes the decision; in others it is the preparatory body for a tax appeal board or the National Tax Tribunal.

The case summary is a central document. In practice it defines how the facts of the case are understood by the decision-maker. Addressing the case summary and the recommendation thoroughly and precisely is a real opportunity to correct the case while there is still time.

The tax appeal boards mainly handle appeals from individuals against a range of decisions on personal income and deductions. The boards are composed of lay members, and the appellant can generally request to present the case orally to the board.

The National Tax Tribunal is the highest administrative appeal body in tax matters. It handles, among other things, the more principled cases, company cases and cases where the appellant chooses the National Tax Tribunal over an appeal board where this is possible. Its decisions are published extensively and have significance beyond the individual case.

The choice between an appeal board and the National Tax Tribunal is not immaterial. It should be made based on the nature of the case, the evidentiary issues and the body of precedent the case should be measured against.

An appeal case is predominantly conducted in writing. The process typically looks like this:

In many tax cases, the evidence is at least as decisive as the law. Typical evidentiary issues include:

A decision from the National Tax Tribunal, a tax appeal board or the Tax Appeals Agency can be brought before the courts. The deadline for this is generally three months from the decision.

Before the courts, the case changes character. It becomes a civil lawsuit with pleadings, the possibility of expert examination, witness testimony and an oral main hearing. The evidence presented is broader than in the administrative system, and a case that could not be adequately clarified in the appeal system can in some instances be better illuminated here.

Hussain Ali Alhaidary handles the case himself and assesses together with you whether the next step should be further documentation, an appeal or court proceedings.

HAY LAW handles tax cases both administratively and before the courts, and has rights of audience before the High Court.

There is a scheme for cost reimbursement, under which part of the expenses for expert assistance in tax appeal and court cases can be covered. The level of coverage depends, among other things, on the outcome of the case and the type of case.

This is something many are not aware of when considering an appeal, and it changes the calculation for many clients.

Not every case requires a lawyer. But there are situations where it typically makes a difference:

We have gathered answers to the questions clients most often ask about letters from the Danish Tax Agency, access to documents, the appeal process and court proceedings.