Global Daily Tax News, Denmark Probing Consultancy Firms' Tax Affairs, (Nov 18, 2024)

The Danish tax agency has launched an investigation into the tax affairs of consultancy companies.

The probe in particular focuses on accountants, lawyers, bookkeepers, and tax consultants.

Following initial investigations, the tax agency found errors in the tax affairs of 9 out of 10 consultancy companies, issuing assessments worth a total of DKK40m (USD5.66m) in respect of 87 companies. These companies were targeted based on risk, after analysis of information available to the tax agency.

According to the agency, issues were identified with their income tax and value-added tax declarations, and 55 of these companies face penalties.

"When you make a living advising others about money and taxes, I have a clear expectation that you have control over your own tax affairs," said Tax Minister Rasmus Stoklund. "Fortunately, the vast majority have. But the controls unfortunately show that there are a few who try to escape. It is completely unacceptable, and therefore we continue the targeted control pressure on the advisory industry."

The agency intends to broaden the probe and has issued warnings in advertisements in trade journals and on LinkedIn to encourage consultancy firms to preemptively check and correct their tax and value-added tax affairs.