The purpose of this thesis is to analyze the influence of LL art 4 on limited partnership companies and it’s participants.
During the last couple of years an increased number of limited partnership companies have been established, as the company form offers an attractive regulatory environment, an attractive liability
structure, possibilities for good management structures and the possibility of allocation of income.
Following the binding ruling SKM.2015.729.SR from the Danish Tax Authorities an increased focus has been put on the tax transparent companies in general. The binding ruling has led to a change to
LL art 4, as the Danish Tax Authorities expressed their disagreement with the current use of the regulation and the prejudice established.
In this thesis we have used interviews, but especially legal methodology, to explore the questions arising of the changed regulation. We have mainly applied current laws, regulations and statutes, court rulings and binding rulings in our analyses of the consequences of the regulation in question.
Based on our analyses, we have experienced and analyzed multiple grey areas and unresolved questions in the current use of the regulation, which cannot by certainty be clarified. The focus of the thesis has been the fact that no rule of thumb can be applied to decide if the participants in a limited partnership company should be defined as self-employed or as wage earners. However,
certain parameters should be taken in to account in the evaluation, including whether the person in question has a significant financial risk linked to the participation, and secondly if the participant
has a significant degree of influence related to the work. A third parameter to take in to consideration is the fact whether or not the participant is subject to instruction.
The discussion around, and evaluation of, the parameters related to influence and financial risk are key elements throughout this thesis and its investigation, as no rule of thumb can be applied, but all
individual cases must undergo a separate assessment.
To the best possible extent, this thesis has aimed to clarify and conclude on the questions stated above. However, the analyses have brought additional unclarified questions, which are yet to be assessed by the authorities.
|Educations||MSc in Auditing, (Graduate Programme) Final Thesis|
|Number of pages||122|
|Supervisors||Søren Friis Hansen|