Selskabers fradrag for lønudgifter efter Statsskatteloven §6, stk. 1, litra a

Cecilia Hjorth Lind

Student thesis: Master thesis

Abstract

The Master’s thesis aims to investigate the current legislation for companies’ tax deduction for payroll costs. It analyzes to what extend the jurisprudence has created an understanding of the scope of the current legislation for companies’ tax deduction of payroll costs after the State Tax Act § 6 (1)(A), and if the jurisprudence created scope of the legislation is economical efficient. The jurisprudence raises some concerns in regards to the courts dynamic judgments, which are unpredictable because of the divergence of earlier judgments. The dynamic interpretation of the judgments occurs because of the high complexity of the Danish Tax regulation and the discretionary configuration of the rule, so the area is quite uncertain.
The Master’s thesis will analyze the problem through a legal analysis, then an economic analysis and will integrate the two analyses in an integrated analysis and discussion to evaluate the efficiency of the area for companies’ tax deduction for payroll costs. The legal analysis will use the legal dogmatic method, which is the method one must use when investigating a legal problem. The economic analysis will initiate with the neoclassical theory, where it will investigate the efficiency of the area for companies’ tax deduction for payroll costs by analyzing an early tax theory by Pigou regarding taxes and subsidies for externalities, and analyze how the marked response to a tax and a tax deduction. Subsequently, the Master’s thesis moves to the neoinstitutional marked and analyzes the transactions cost, where the analysis will be summed up in a game theory examination. The Master’s thesis will then integrate the legal and the economic analysis, and analyze to what extend the current state is efficient, or how it can be economical optimized. The Master’s thesis will in conclusion propose a new efficient legislation.
The Master’s thesis concludes that the current jurisprudence created scope of the current regulation for companies’ tax deduction of payroll costs after the State Tax Act § 6 (1)(A) is economical inefficient, and the rule should be altered. The rule should be specified, so that the underlying regulation, that makes the Danish tax regulation very complex, will be deregulated. The area for companies’ tax deduction of payroll costs will thereby be simplified, so transaction costs will be diminished, and the area will thereby economical optimized.

EducationsMSc in Commercial Law, (Graduate Programme) Final Thesis
LanguageDanish
Publication date2017
Number of pages88
SupervisorsKalle Rose