Denmark Tax Agency Clarifies Personal Liability of Corporate Directors for Taxes of Unregistered Businesses

The Danish Customs and Tax Administration Jan. 16 posted National Tax Court Decision No. SKM2026.32.LSR, clarifying the personal liability of corporate directors for the taxes of unregistered businesses. The taxpayer, a company director, was held personally liable for the VAT after the Tax Agency denied the company’s requests to register for the tax, but the company commenced and continued business. On appeal, the National Tax Court found that the taxpayer was: 1) grossly negligent by initiating the operations subject to registration and continuing without registration; and 2) therefore personally liable for the company’s outstanding VAT. [Denmark, Customs and Tax Administration, ...