Reparationsmuligheder inden for skatteretten: Med fokus på SFL § 29

Frank Wilcken Wulff

Student thesis: Master executive thesis


The Danish tax law is complex as well as extensive. Therefore, it can be difficult to understand the tax consequences of civil transactions. The tax authorities' treatment of a given civil transaction may also surprise the taxpayer and have significant tax consequences for the taxpayer.The legislature has recognized that taxpayers will sometimes enter into civil transactions where they either did not know, or could not predict, the tax consequences of their actions.This master's thesis therefore describes which repair options are included in the Danish tax law.However, the focus of the master's thesis is the access to change a civil transaction in accordance with section 29 of the Danish Tax Administration Act, where the thesis defines the applicable law based on the legal process,the literature and the court decisions.In connection with the fact that major shareholders have repaid illegal shareholder loans, several decisions have recently been decided by the National Tax Court regarding the refusal of the tax authorities to apply for a conversion. The principal shareholders apply for a reversal, after they have become aware, that the company's claim on the principal shareholder, could have been distributed to the shareholder as assets other than cash, instead of repayment of the loan, as they have done. Whereby taxation in connection with a subsequent distribution of the payment could be avoided.These applications are generally rejected by the tax authorities, in part because it is claimed that if the loan is repaid, it cannot be revived.The thesis therefore partly describes that factual facts in the cases are different, and partly that it is possible, on the basis of the original purpose of the right of conversion, to revive a civil loan in connection with the conversion.However, the thesis also emphasizes that the revival of loans, is not necessarily enough to decide that the decisions should fall to the taxpayer's benefit, because section 29 of the Tax Administration Act contains 5 criteria, each of which must be complied with in order for conversion to be approved by the tax authorities.However, the thesis concludes that it will probably require additional court decisions from higher courts than the National Tax Court to determine the precise legal effect of repayment of illegal shareholder loans by the major shareholders.Finally, the thesis debates whether the deadlines in Sections 26, 27 and 34a of the Tax Administration Act should also apply for application for conversion under the Tax Administration Act 29. The thesis concludes that the general deadlines in the Tax Administration Act are in practice considered to be applicable to the Tax Administration Act 29.In the thesis, however, questions are asked as to whether it does not limit the taxpayer's ability to obtain an extraordinary resumption of their taxation in accordance with section 27 of the Tax Administration Act.

EducationsMaster i Skat, (Executive Master Programme) Final Thesis
Publication date2020
Number of pages56