Skattemæssigt hjemsted for en fysisk person

Abstract

The primary purpose of this assignment is to show how to determine where a dual domiciled individual is resident for tax liability. The report focuses on individuals who under the internal legislation of the two countries, are considered fully liable for tax and have permanent home available in both countries. The rules of dual tax domicile for individuals are found in article 4 paragraph 2 in the double taxation agreements that Denmark has entered into with other countries, agreements made in order to eliminate double taxation. These agreements are usually drawn up on the basis of the OECD Model Tax Convention on Income and on Capital: The MODEL CONVENTION WITH RESPECT TO TAXES ON INCOME AND ON CAPITAL. The report contains an analysis on what basis the tax authorities and the court in Denmark makes their decisions in case of on dual domicile, where the individual should be deemed to have his/her domicile for tax purposes. In the analysis, the focus is on whether the tax
authorities and the courts use the comments to article 4 paragraph 2 in their decisions. To be able to determine in which of the two countries the individual is to be deemed resident for tax purposes, it is necessary to obtain information about the individual. In order to even start an assessment to domicile for tax purposes, documentation showing that there is a second country in which the individual is also deemed resident tax liable and in which country the individual also has a permanent home available, must be present. Secondly, serval other information must be obtained. For example where does his wife and the children live, where does he works, are there other kind of business activities, does he
own assets in both countries, where does he spend his holidays, where do his friends live, has he always lived in the other country, what does his actions show, what does his life habits show, for how long a period has he had an employment contract, for how long a period has he been dual domiciled. There are a number of objective and subjective concerns to take into account in the assessment of where the individual is to be considered to have tax liable domicile. The conclusion is that it is a difficult task to solve. The way it is resolved is not uniform in the decisions made by the tax authorities and the courts in Denmark. In some decisions, the subjective factors are included according to the comment to article 4 paragraph 2 and in other decisions, an attempt is made to base the decision on the more objective factors.