Denmark Tax Agency Clarifies Tax Rules for Family Business Restructurings

The Danish Customs and Tax Administration May 21 posted online Eastern High Court Decision No. SKM2025.289.OLR, clarifying tax rules for family business restructurings. The taxpayers, a Danish father and son, restructured their family-owned group in a share exchange and subsequent termination demerger. After a large, extraordinary dividend was distributed to the taxpayers’ respective and resultant holding companies, without notifying the Tax Agency, the Tax Agency revoked the permit for the tax-free restructuring. On appeal, the Eastern High Court affirmed the district court’s judgment against the taxpayers, finding that: 1) the Tax Agency could use the Tax Administration Act’s extended assessment ...