The Principle of Legality in the Context of Danish Tax Law
17 Pages Posted: 16 May 2019 Last revised: 21 May 2019
Date Written: May 16, 2019
The authors discuss the Danish legislator’s taxing powers in the context of the principle of legality, particularly the non-delegation doctrine enshrined in the constitution, which prescribes that no taxes shall be imposed, altered, or repealed except by statute. While a few constitutional provisions are seen as important with respect to Danish tax law, the significance of these provisions may have been overestimated in the tax law literature. The authors conclude that section 43 of the Danish constitution is the most important constitutional rule on tax as it provides a constitutional prohibition on legislative delegation in the tax area. In the view of the authors, the courts and most scholars have approached the non-delegation doctrine pragmatically, accepting important modifications regarding both the practical realities of lawmaking and the long-standing practice of delegation of certain taxing powers to the municipalities. Additionally, the authors touch upon the new Danish general anti-avoidance rules and the so-called doctrine of reality from a constitutional angle.
Keywords: Principle of Legality, Non-delegation Doctrine, Constitutional Law, Danish Tax Law
JEL Classification: K34, K10, K40
Suggested Citation: Suggested Citation