Penalty reduced from DKK 880,000 to DKK 260,000 in a tax criminal case

Gross negligence, not intent

In tax criminal cases, it is of great importance whether an violation is assessed as intentional or grossly negligent.

We argued that there was no basis to consider our client's actions as intentional. There was, among other things, uncertainty about the cooperation and communication between the client and the adviser who had assisted with the relevant matters.

The Tax Agency's Criminal Case Unit agreed that the matter should be assessed as gross negligence and not as intent.

This had a significant impact on the criminal law assessment and the final fine.

Part of the case was time-barred

During our review of the case, we also identified a limitation issue.

We argued that an error on the part of the authorities had the consequence that a significant part of the conduct included in the fine calculation could no longer be punished.

The Criminal Case Unit agreed with this view.

The time-barred part of the case therefore had to be removed from the criminal law basis.

The fine was reduced by DKK 620,000

The overall assessment led to the fine being reduced from DKK 880,000 to DKK 260,000.

The client's fine was thereby reduced by DKK 620,000.

The case illustrates why a tax criminal case should be reviewed independently and not merely treated as an extension of the underlying tax case.

It is necessary to consider, among other things, the evidence, the attribution of culpability, the limitation periods and the specific calculation of any criminal liability.

Charged or notified of a liability case?

We assist in tax criminal cases concerning, among other things, tax evasion, VAT evasion and other matters where the Tax Agency is considering asserting personal criminal liability.

If you have received a notice of a liability case, a proposed fine, or your case has been referred to the Tax Agency's Criminal Case Unit, you are welcome to contact us for a confidential and non-binding assessment of the case.