Trippelbeskatning ved sager om rette indkomstmodtager

Christina Beier Andersen

Student thesis: Master executive thesis


The purpose of this master thesis is to illuminate and analyze when tax authorities find reason to change a capital owner's decision to recoup a given income in one of the capital owner's companies and, what tax consequences such allocation of income entails for the capital owner and the company. All cases concerning right income recipient are based on concrete assessments and each case must be assessed separately. Based on an analysis of legislation and practice, it is clear that the main reason for the tax authorities' decision to allocate income from a company to its capital owners is that the income-generating activity according to Circular No. 129 of 4 July 1994 on the Personal Tax Act can not be regarded as professional. An activity that can not be regarded as a professional can not be operated in company form, and will therefore be considered as personal income to the capital owner. When an income is allocated from a company to the capital owner, the capital owner shall be taxed in accordance to the rules of taxation of personal income. The tax rate for taxation of personal income is significantly higher than the tax rate for corporate taxation. When allocating income, taxation accrues to the capital owner, but the money is still placed in the company. The tax authorities therefore treat this as a grant granted by the capital owner to his company. As a result of the grant, there is now a double taxation in which both the capital owner and the capital company are taxed by the same income. When the capital owner wishes to raise the money to himself, a triple taxation will occur, as the income is now taxed as a dividend income. In some cases, the total tax rate rises to 112 %. If the capital owner and the company wish to cancel the triple taxation, a request for an alteration may be made pursuant to the Tax Administration Act. An alteration cancels the original disposition and put both the company and the capital owner as if the money had never been placed in the company. The company thereby avoids taxation of a grant and the capital owner will avoid dividend taxation. To achieve the alteration, there are five conditions that must be met. The two most crucial conditions are that the decision to place the income in the company must not be carried out for the sake of saving or postponing taxes and that the disposition has to be made clear to the authorities. If these conditions are met and the capital owner and the company have lifted the burden of proof that they are met, alteration can be obtained. Practice shows, however, that the burden of proof can be difficult to lift, so that in most of the cases there is no possibility of alteration.

EducationsMaster i Skat, (Executive Master Programme) Final Thesis
Publication date2018
Number of pages50