Tax cases · 15 May 2026
Tax assessment set aside, the Danish Tax Agency had not observed the response deadline
The matter was conducted by attorney Hussain Ali Alhaidary. Hussain Ali Alhaidary
We successfully represented a taxpayer where the Danish Tax Agency failed to comply with the response deadline under section 27(2) of the Tax Administration Act. The assessment was set aside.
We assisted a client in an appeal case where the Danish Tax Agency had made a substantial increase to the client's tax assessment for the 2017 income year.
The case arose from a number of money transfers made via currency exchange bureaus. The Tax Agency took the view that it was not documented that the transfers had been made with already taxed or tax-free funds, and therefore increased the client's income.
During the review of the case, however, a completely different and decisive question emerged: had the Tax Agency observed the deadline for amending the tax assessment at all? It had not.
The response deadline under section 27(2) of the Tax Administration Act
When the Tax Agency wishes to amend a tax assessment extraordinarily after the ordinary deadlines have expired, special conditions and deadlines apply.
One of these is the response deadline in section 27(2) of the Danish Tax Administration Act.
During the appeal, we argued that the Tax Agency had not reacted within the deadline laid down by the provision. The Tax Agency was therefore not entitled to carry out the extraordinary amendment of the client's tax assessment.
We succeeded in this argument, and the taxation carried out was set aside.
The Tax Agency cannot freely postpone the start of the deadline
An important question in the case was when the Tax Agency had sufficient information to react.
The Tax Agency cannot simply postpone the start of the response deadline by continuously requesting further information from the taxpayer, if the agency already holds the information that provides a basis for reacting.
At the same time, the authorities have a responsibility to ensure that the case is sufficiently clarified and to obtain relevant information as early as possible in the proceedings.
This is of great practical importance. Otherwise, a statutory deadline could be extended simply by the authority continuing to obtain information successively.
Deadlines can be decisive in a tax case
The case is a good example of why a tax case should not be assessed solely on whether the Tax Agency's substantive assessment is right or wrong.
It is equally important to review the entire course of the case.
When did the Tax Agency receive the relevant information? When could the agency react? When was the case notified? And were the statutory deadlines observed?
A missed deadline can, in some cases, be decisive for whether a tax assessment can be upheld at all.
Has the Tax Agency reopened earlier income years?
We assist in tax cases concerning, among other things, extraordinary reopening, response deadlines, money transfers, bank deposits and increases to earlier income years.
If the Tax Agency has reopened an older income year or made an increase after the ordinary deadlines have expired, it may be relevant to have it assessed whether the conditions and deadlines of the Tax Administration Act have been observed.
You are welcome to contact us for a non-binding assessment of the case.
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