Danish police were alerted by Denmark’s tax authorities that foreign companies had drained more than €800 million from the system in what is being called the country’s biggest tax fraud.
According to Jesper Ronnow Simonsen, head of the Skat tax agency, during the summer the company received some information from foreign authorities. This information caused the Danish tax authority’s suspicion. As Mr Simonsen continues, Skat has been running internal investigations, something that confirmed their suspicions and as a result Skat have handed the case over to the police.
A spokesman for the police force confirmed that the investigation was handed to them by Skat stating it is top priority. Skat are not currently willing to release the information that caused the suspicion, when asked which foreign authority flagged the matter to them.
Nonetheless, the fraud involves returns on stock, including dividends, in Danish companies paid to foreign companies. Normally in Denmark dividends carry a 27% tax, however under double taxation agreements, foreign companies based abroad are entitled to a refund of part of Danish tax they have paid if they have paid in their home country.
After the investigation was conducted, it appeared that a large network of companies abroad have applied to have their dividend taxes refunded for fictional share holdings, based on falsified documents, as Mr. Simonsen stated. As a result of the above, $940 million was claimed by 2120 individuals.
The economic and international crime unit of the Danish police have stated again that the case is top priority.