Contents

This section describes the rules on the auditor's statement in connection with the bank's or pension provider's submission of a statement under Section 21-23 of PAL.

 

The rules are set out in Sections 22-28 in Order no. 1540 of 13 December 2007 on rules in the Danish Pension Investment Return Tax Act on foreign banks and pension providers and on compensation disbursements.

 

The section covers

  • Covered by the rule on the auditor's statement
  • External auditors for banks and pension providers
  • Generally accepted auditing standards
  • Audit on a test basis
  • Information for the auditor
  • Auditor's statement and deadline for submission
  • Offences or violation of rules and regulations

Covered by the rule on the auditor's statement

Banks and pension providers offering pension plans covered by Section 1(1) of PAL are covered by the rule on the auditor's statement.

 

See Section 22 of Order no. 1540 of 13 December 2007 on the rules in the Danish Pension Investment Return Tax Act on foreign banks and pension providers and on compensation disbursements.

 

External auditors for banks and pension providers

The audit is performed by two external auditors elected by the banks and pension providers offering pension plans covered by Section 1(1) of PAL.

 

In banks and pension providers doing internal audits, the audits are performed in collaboration with the internal audit in accordance with the applicable rules on auditing of the individual bank or pension provider.

 

See Section 23 of Order no. 1540 of 13 December 2007 on the rules in the Danish Pension Investment Return Tax Act on foreign banks and pension providers and on compensation disbursements.

 

Generally accepted auditing standards

The audit is performed in accordance with generally accepted auditing standards.

 

In connection with the audit, the auditor must verify that

  • business procedures and accounting systems have been established which ensure that the plan is administered in accordance with applicable rules,
  • the business procedures are observed,
  • the rules applying to the plan have been observed, and
  • the settlement with the Danish state has been made in time and in accordance with the booked amounts.

See Section 24 of Order no. 1540 of 13 December 2007 on the rules in the Danish Pension Investment Return Tax Act on foreign banks and pension providers and on compensation disbursements.

 

Audit on a test basis

The audit can be performed as examinations on a test basis.

 

The scope of the audit depends on the administrative structure and procedures of the banks and pension providers, including their internal controls and other matters pertaining to the administration of the plan, as well as the number of cases and their sizes.

 

See Section 25 of Order no. 1540 of 13 December 2007 on the rules in the Danish Pension Investment Return Tax Act on foreign banks and pension providers and on compensation disbursements.

 

Information for the auditor

Banks and pension providers must

  • provide the auditor with the information which is relevant to the audit of the plan,
  • give the auditor access to carrying out the required examinations,
  • make sure that the auditor receives the information and the assistance which the auditor deems necessary in order to perform his duties.

See Section 26 of Order no. 1540 of 13 December 2007 on the rules in the Danish Pension Investment Return Tax Act on foreign banks and pension providers and on compensation disbursements.

 

Auditor's statement and deadline for submission

The auditor must submit a written statement indicating that the bank's or pension provider's final statement to SKAT pursuant to Sections 21-23 of PAL has been audited in accordance with the rules set out in the Order.

 

For practical reasons, the auditor's statement must not be provided on the actual statements under Sections 21-23 of PAL but must take the form of a separate statement which must be submitted at the same time as the actual statements.

 

It follows from the wording ‘the final statements ... under Sections 21-23 of PAL' that an independent auditor's statement must be provided per statement type. This means that no collective auditor's statement can be provided which e.g. covers a bank's or pension provider's statement under Sections 21 and 23 of PAL.

 

See Section 27 of Order no. 1540 of 13 December 2007 on the rules in the Danish Pension Investment Return Tax Act on foreign banks and pension providers and on compensation disbursements.

 

Requirements for the auditor's statement

The auditor's statement must be prepared in accordance with Danish Executive Order no. 1537 of 22 December 2004 on Statements Made by State-Authorised and Registered Public Accountants (Erklæringsbekendtgørelsen) of the Danish Commerce and Companies Agency (Erhvervs- og Selskabsstyrelsen).

 

Reservations and/or supplementary information must appear from the auditor's statement.

 

If a bank or pension provider has an internal auditor, the internal auditor can endorse any periodical statements.

 

Deadline

The auditor's statement must be submitted to Tax Centre Maribo (Skattecenter Maribo)

  • for banks, no later than on 1 April in the year after the year of taxation, cf. Sections 22 and 23 of PAL,
  • for pension providers, within 30 days of the expiry of the deadline for the final statement at the latest, cf. Section 21 of PAL.Review of the statement

The auditor ensures that the bank's or pension provider's final statement to SKAT pursuant to Sections 21-23 of PAL contains the required information on

  • the plan which the statement concerns,
  • the bank or pension provider which it concerns, and
  • the period which it concerns.

The auditor must also check that the statement contains

  • the information required by SKAT,
  • dating, and
  • signatures of the board of executives/administration of the bank or pension provider.

If, in the opinion of the auditor, there are significant matters which give rise to comments vis-à-vis SKAT, the auditor must ensure that these are included in the bank's or pension provider's statement.

 

Offences or violation of rules and regulations

If it comes to the auditor's attention that offences or violations of rules and regulations have occurred which have a significant impact in connection with

  • the administration of the plan or
  • the matters mentioned in Section 27 of the Order,

the auditor must request that the bank or pension provider notify SKAT thereof within 3 weeks.

 

The above circumstance as well as the fact that the auditor has requested the bank or pension provider to notify SKAT must appear from the auditor's statement to SKAT.

 

See Section 28 of Order no. 1540 of 13 December 2007 on the rules in the Danish Pension Investment Return Tax Act on foreign banks and pension providers and on compensation disbursements.