Abuse and Avoidance – A Contemporary Analysis of Danish Tax Law

Revue européenne et internationale de droit fiscal/European and International Journal of Tax Law, 2018, issue 4, p. 489-499, Larcier, Brussels

Copenhagen Business School, CBS LAW Research Paper No. 19-33

22 Pages Posted: 25 Sep 2019

Date Written: September 24, 2019

Abstract

Based on a traditional legal dogmatic method, valid law is deduced with respect to general anti-abuse rules (GAARs) in Danish tax law. Accordingly, first it is discussed whether a court-developed general anti-avoidance doctrine can be considered to exist. Subsequently, the provision containing the so-called principal purpose test (PPT), which was introduced in Danish tax law in 2015, is analyzed. Finally, the recent Danish implementation of the general anti-abuse rule in Article 6 of the ATAD is examined (ATAD-GAAR). It is concluded that the GAARs may assist the Danish tax authorities in their quest to mitigate abuse and avoidance. However, it is also concluded that the new statutory GAARs not only have brought additional complexity to Danish tax law but have also deteriorated the possibility of taxpayers to predict the consequences of their transactions.

Keywords: Danish tax law, General anti-abuse rules, Principal purpose test, Predictability

JEL Classification: K34, K30, K39

Suggested Citation

Koerver Schmidt, Peter, Abuse and Avoidance – A Contemporary Analysis of Danish Tax Law (September 24, 2019). Revue européenne et internationale de droit fiscal/European and International Journal of Tax Law, 2018, issue 4, p. 489-499, Larcier, Brussels; Copenhagen Business School, CBS LAW Research Paper No. 19-33. Available at SSRN: https://ssrn.com/abstract=3458843 or http://dx.doi.org/10.2139/ssrn.3458843

Peter Koerver Schmidt (Contact Author)

Copenhagen Business School - CBS Law ( email )

Porcelaenshaven 18B, 1 floor
Frederiksberg 2000
Denmark

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