Denmark Tax Agency Clarifies Income Recognition for Invoices Issued Under No Cure, No Pay Agreements

The Danish Customs and Tax Administration May 4 posted online Western High Court Decision No. SKM2026.212.VLR, clarifying income recognition for invoices issued under no cure, no pay agreements. The taxpayer, a tax advisory company, issued invoices under no cure, no pay agreements, resulting in clients not being liable for payments and the taxpayer only being able to be paid through cost reimbursement from the Tax Agency. The taxpayer argued that the invoices weren’t considered income in 2011 due to reimbursement being uncertain, while the Tax Agency contended that income arose when the invoices were issued. On appeal, the Western High ...