Maskeret udbytte: I forhold til fri bil og fri helårsbolig

Andreas Munk Hansen & Christian Bowall

Student thesis: Master thesis

Abstract

This thesis is about tax. It deals with the notion of ‘Disguised dividend’ concerning material comforts. Disguising your dividend as income related to something else, with a more gentle taxation is a way to obtain a fiscal advantage. We focus on situations where companies pay the costs of either their shareholders or employees private disposal of company cars and/or year-round residence. Legislation regarding this subject is found in Ligningsloven (LL) §§ 2, 16 & 16 A. Due to Danish law almost any benefits received from a company you either work for or own should be taxed. It doesn’t matter whether you actually use them or not. This is also the case with company cars and/or year-round residence. The legislation for this purpose is slightly different whether you’re a principal shareholder or an employee. We are in the thesis clarifying both matters. The primary legislation, regarding company cars is found in LL § 16, subsection 4. It stipulates, that company cars should be taxed if available for either principal shareholders or employee’s private use. If the principal receives the company car as dividend, the car will be taxed according to LL § 16 A, subsection 6. The valuation of the car depends on its registration date. Is the car bought three years or less after the date of the first registration the original price is used for taxation. Is the car bought more than three years after the first registration the taxation will be based on the purchase price. The taxed annual value of a car is set to 25% of the value of the car that doesn’t exceed 300.000 DKK. Any remaining amount will be taxed with 20%. The minimum value to be taxed is, according to LL § 16, subsection 4, paragraph 2, 160.000 DKK. Year-round residences are, when provided for employees, according to LL § 16, subsection 3, taxed by the market rent. The market rent is until 2013 found by a schematic rate index. The taxation of principal shareholders is set to 5% of the value of the year-round residence. The above-mentioned legislation is in this thesis analysed both legally and economic. We find that a easing of restrictions regarding ‘Disguised dividend’ could be a socially useful way of improving public efficiency. A way of doing so could be by taxing actual use instead of disposal.

EducationsMSc in Commercial Law, (Graduate Programme) Final Thesis
LanguageDanish
Publication date2012
Number of pages149