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Danish Tax Agency Overhaul Complete

Wednesday, July 4, 2018

An administrative overhaul of Denmark's tax authority was instituted on July 1, with a series of new specialized boards becoming operational.

Under the changes, the tax authority has been split into seven separate entities, each of which has a core area of competency. The new boards include the following:

  • A Tax Administration Board, responsible for the correct payment of taxes, including value-added tax;
  • A Debt Management Board, responsible for the collection of unpaid taxes;
  • An Assessment Board, responsible for judicial proceedings in the area of taxation;
  • A Customs Agency Board, responsible for the settlement of customs duties;
  • A Motor Vehicle Board, responsible for the registration and collection of vehicle taxes;
  • A Development and Simplification Board, responsible for the tax authority's IT systems and administrative simplification projects; and
  • An Administration and Services Agency Board, responsible for the day-to-day functions of the tax authority overall, including recruitment, human resources, accounting, and procurement.

Commenting on the changes, Tax Minister Karsten Lauritzen said that he has "a high degree of faith in the new tax administration."

"Now you get a clear focus and more attention on the individual areas," he said.

Last year, the Danish parliament voted through an additional DKK5.5bn (USD859m) in funding for the tax authority, taking the total amount the Government will spend on overhauling the administration of taxation to DKK10.5bn.

As part of these reforms, the Government plans to hire an additional 1,800 tax authority staff by 2021 and invest in new information technology systems.

The additional investment will also help it to target areas of the tax regime that are prone to avoidance and evasion, particularly in the area value-added tax, the Tax Ministry has said.