Denmark: Suspension of withholding tax reclaims
The Danish Tax Authority (SKAT) submitted on 25 August 2015 a case to the Danish State Prosecutor for Serious Economic and International Crime (SØIK) concerning alleged fraud by foreign claimants in regards to payments of withholding tax.
All reclaims with regards to withholding tax have therefore been suspended pending the outcome of the investigation. Currently, SKAT estimates that approximately 6000 reclaims will be put on hold.
The investigation is based on studies that show a large network of companies abroad that have apparently tried to get dividend tax reclaimed on the basis of fictitious shareholdings and falsified documentation.
The basis of the case is the payment of refunds relating to 2,120 individual requests corresponding to a total refund of approximately 6.2 billion DKK. These refunds cover the period between 2012 and 2015.
Unfortunately, the depository does not know how long the investigation will take.
We will continue to monitor the situation in the Danish market and advise customers when reclaims can again be processed.
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