Contents

The section covers

• Estimated assessment
• Interest in connection with estimated assessment
• Request for information
• Penalty payments

 

Estimated assessment (Section 29(1) of PAL)

If the statements under Sections 21-24 of PAL have not been submitted in due time, SKAT determines the basis of taxation and the taxable part thereof according to an estimated assessment.

 

If SKAT chooses to assess the basis of taxation according to an estimated assessment, the assessment must be based on a realistic evaluation of the situation of the person liable to taxation. SKAT can base the assessment on the information which SKAT has or which comes to SKAT's knowledge.

 

An estimated assessment does not exempt the person liable to taxation from having to submit a correct statement. The estimated assessment will be reconsidered and changed upon submission of the correct statement.

 

Procedure

SKAT sends a proposed decision to the person liable to taxation concerning the planned estimated assessment of the basis of taxation and the taxable part thereof. The proposed decision from SKAT must be accompanied by the particulars of the case specifying the grounds on which it is based.

 

Pursuant to Section 20 of SFL, SKAT must grant a deadline of at least 15 days for providing additions or corrections to the estimated assessment.

 

If SKAT receives additions or corrections to the assessment, SKAT is authorised to make a decision if agreement between SKAT and the person liable to taxation is reached. In case of continued disagreement, the case can be brought before the Danish National Tax Tribunal. The complaint about the decision must be received by the National Tax Tribunal within three months of the person liable to taxation having received SKAT's decision. See Section 42 of SFL.

 

The decision must contain the assessment, the grounds on which the assessment is based as well as information on the right of complaint of the person liable to taxation and the bank. See Sections 22-25 of the Danish Public Administration Act (Forvaltningsloven (FVL)).

 

See also

For case particulars in connection with proposed decisions, see Procedural Rules within SKAT's Area, Section E.3.6, Case particulars.

 

Interest in connection with estimated assessments (Section 29(2) of PAL)

If the PAL tax is determined according to an estimated assessment under Section 29(1) of PAL, default interest is payable under Section 28 of PAL from the final due date for payment under Sections 21-24 and 26 of PAL and until payment is made.

 

Request for information (Section 29(3) of PAL)

SKAT may instruct

• persons liable to taxation under Section 1(2) of PAL,
• banks and pension providers offering pension plans covered by Section 1(1) of PAL,
• investment funds, and
• persons liable to taxation under Section 1(1) of PAL

to submit, within a specified deadline, the information which SKAT needs in order to be able to check the statement of the PAL tax under Sections 21-24 of PAL.

 

This means that SKAT has an alternative way of obtaining the information. This possibility should only be used in cases where SKAT has first attempted to obtain the information from the bank or pension provider. See the comments on Section 29 in L 10 of 28 November 2007.

 

The material/information requested must be relevant to the determination of the basis of taxation which is being checked.

 

SKAT must grant a deadline of at least 15 days for submission of the information.

 

Penalty payments (Section 29(4) of PAL)

If SKAT does not receive

• the statements under Sections 21-24 of PAL or
• the information under Section 29(3) of PAL

in due time, the Danish Minister for Taxation can impose penalty payments on the party which is to submit the statement or the information. These can be imposed as either daily or weekly penalties until the statement or information is submitted.