Denmark Targets Certain Business Shareholders for Tax Evasion

The Danish Tax Agency will begin targeting unrealistically low private consumption of major shareholders in Denmark’s small- and medium-sized enterprises as a potential sign of tax evasion.

These shareholders have lived “on almost nothing” for years, suggesting that personal expenses are covered by their companies or income is hidden from taxation, the agency said in a press release Wednesday.

A selection of shareholders can soon expect official letters advising them to verify income reporting and warning of audits requiring documentation of income and assets, according to the agency.

• Shifting personal expenses to companies and concealing taxable personal income ...