Subjektiv skattepligt for fysiske personer ved tilflytning til Danmark

Patrick Rasmussen

Student thesis: Master thesis


Executive summary: This thesis focuses on full tax liability for individuals moving to Denmark and in particularly the regulations regarding, when full tax liability occurs. The Danish tax law states that you are full tax liable when you have a residence available and resides in Denmark. Otherwise you are only allowed to reside in Denmark for 180 days over a period of 12 months but no stay can last for more than 3 months at a time. Furthermore your stay is only permitted for vacation purposes or similar and cannot have a character of a business visit. The Danish tax law have been debated the last couple of years due to the tax case of the husband to the Danish Prime Minister, Stephen Kinnock. The tax case regarding Stephen Kinnock has been the start of a revelation of common practice in similar tax cases. Especially the case regarding the Danish model Camilla Vest has been spectacular and revolutionary. Camilla Vest and her husband were both sentenced to prison and each fined with DKK 3.3 mio. for tax evasion. The case was appealed and Camilla Vest and her husband was the second time acquitted when they used the Stephen Kinnock’s case as a benchmark for their acquittal. The decisions in those two tax cases has been the foundation for an issued control signal which have set the framework for the resumed proceedings and the ground rules for the amended tax practice. The control signal issued, have set the boundaries for what is accepted in terms of work done in Denmark. During visits to Denmark you are now allowed to work up to 10 days in a period of 12 months and the work may not be a part of a fixed pattern such as employment with an employer. Furthermore activities in Denmark cannot be specific or significantly linked to Denmark, if the activities require more than limited physical presence, it can result in full tax liability. When taxpayers live in one country and work in another, situations arise where taxpayers are taxable in two countries. These situations are settled by a double taxation treaty between the two countries, in which 4 criteria exist to establish whether the taxpayer is full tax liable and where he is limited tax liable. The description of the amended tax practice reveals a picture of uncertainty and changes in the interpretation of the set of rules. Because of that, my conclusion is that a change in the tax law has to be implemented in order to increase the difference between prison and no tax liability.

EducationsMSc in Auditing, (Graduate Programme) Final Thesis
Publication date2015
Number of pages76