Penalty of DKK 20,000 in a tax and VAT case, against a possible fine of up to DKK 244,000

The amounts were recognised as loans

During the case, we argued that part of the amounts included by the Tax Agency in the case were not taxable income, but genuine loans.

The Criminal Case Unit agreed with this assessment.

This had a direct bearing on the calculation of the amount that could form the basis for any criminal liability.

Gross negligence, not intent

Another central question was whether the client had acted with intent or gross negligence.

We argued that there was no basis to establish that the client had consciously attempted to evade tax or VAT.

The Tax Agency's Criminal Case Unit assessed that the client had acted with gross negligence only, and not with intent.

The difference is significant in a tax criminal case, because the assessment of intent or gross negligence can have a major impact on both the nature of the penalty and the size of the fine.

The fine was set at DKK 20,000

The overall handling of the case resulted in the fine being set at DKK 20,000, even though the client originally faced a possible fine of up to DKK 244,000.

The case illustrates how important it can be to thoroughly examine both the tax basis and the criminal law assessment.

In a tax criminal case, one should not only look at the amount calculated by the Tax Agency. It is also necessary to assess whether the amounts are taxable at all, what the client actually knew, and whether there is a basis for establishing intent or merely negligence.

Received a liability case from the Tax Agency?

We assist in cases concerning, among other things, tax evasion, VAT evasion, fine cases and liability cases before the Tax Agency's Criminal Case Unit.

If you have received a notice of a liability case, a proposed fine, or have been charged in a tax or VAT case, you are welcome to contact us for a confidential and non-binding assessment of the case.