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
22 Pages Posted: 25 Sep 2019
Date Written: September 24, 2019
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: Suggested Citation