Denmark Tax Agency Explains Taxation of Disguised Dividends, Company-Provided Cars

The Danish Customs and Tax Administration Dec. 8 posted online Tax Council Decision No. SKM2021.666.LSR, explaining the taxation of disguised dividends and company-provided cars. A sole practitioner dentist transferred his business to a newly incorporated company, of which he was the sole shareholder. The company rented the taxpayer’s home as administrative office space, for which the taxpayer received rental income. The company also provided a car for the taxpayer’s use. The taxpayer claimed deductions for these expenses. The tax agency clarified that: 1) the car-related expenses are taxable because it was provided for the taxpayer’s private use; and 2) the ...