Following adoption by the Danish Parliament on 8 May 2012, a
Danish tax amnesty scheme is now
open up to and including 30 June 2013.
In summary, the scheme offers Danish taxpayers - individual and
corporate - with undisclosed funds in foreign banks, etc. the
possibility of voluntarily declaring such income and assets to the
Danish Tax Authority at a reduced penalty and without risk of
Irrespective of the amount of taxes evaded, the scheme provides
for a maximum fine of no more than 60% of the Danish taxes payable
on the undisclosed income, etc. Outside of the amnesty scheme, tax
evasion would, depending on the amounts concerned, etc., be subject
to either a fine in an amount of twice the taxes payable or prison
for up to eight years. Tax evasion exceeding DKK 500,000 normally
results in imprisonment.
In addition, interest is payable on any taxes owed. The fine is
not payable on the interest. It is a condition for obtaining the
60% fine, that taxes and interest are effectively paid.
The scheme applies only to undisclosed funds located in
countries from which the Danish Tax Authority cannot obtain
information under a tax treaty in force on 1 January 2008.
Accordingly, amnesty is available for undisclosed funds in, e.g.,
Switzerland and Liechtenstein, but not for the following
Argentina, Armenia, Australia, Azerbaijan, Bangladesh, Belarus,
Brazil, Bulgaria, Canada, Chile, China, Cyprus, Czech Republic,
Denmark, Egypt, Estonia, Faroe Islands, Finland, France, Germany,
Greece, Greenland, Guam, Hungary, Iceland, India, Indonesia,
Ireland, Israel, Italy, Jamaica, Japan, Kenya, Kyrgyzstan, Latvia,
Lithuania, Macedonia, Malaysia, Malta, Mexico, Montenegro, Morocco,
Netherlands, New Zealand, Norway, Pakistan, Philippines, Poland,
Portugal, Puerto Rico, Romania, Russia, Serbia, Slovakia, Slovenia,
South Africa, South Korea, Spain, Sri Lanka, Sweden, Taipei,
Tanzania, Thailand, Trinidad and Tobago, Tunisia, Turkey, U.S.
Virgin Islands, Uganda, Ukraine, United Kingdom, USA, Venezuela,
Vietnam and Zambia.
Amnesty is not available if the Danish Tax Authority or another
Danish public authority has already contacted the tax payer
regarding the issue.
Tax payers wishing to make use of the scheme must make a
declaration to the Danish Tax Authority, setting out details on
themselves and the undeclared funds, etc.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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The Cyprus Tax Department recently issued Forms T.D 38, T.D 38Qa and T.D 38Qb applicable to individuals being Cyprus tax residents but non-Cyprus domiciled.
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