Contents

This section describes the provisions on sanctions set out in PAL.

 

The section covers

  • Rule
  • Companies' criminal liability
  • Violation of the Order
  • Fine without prosecution
  • Search

 

Rule (Section 32(1) and (2) of PAL)

It is possible to fine a party if the party, intentionally or through gross negligence, has

  • made misrepresentations or provided misleading information or has suppressed information for use in the PAL tax control,
  • failed to submit a statement under Sections 20-24 of PAL, and/or
  • failed to pay the PAL tax in due time.

Intentional evasion of national tax is punishable by a fine or imprisonment for of up to 2 years.

 

Companies' criminal liability (Section 32(4) of PAL)

Companies liable to taxation under Section 1(2) of PAL can incur criminal liability pursuant to the rules set out in Part 5 of the Danish Criminal Code (Straffeloven).  See Sections 25-27 of the Danish Criminal Code. (Danish Consolidation Act 2007-10-23 no. 1260).

 

Violations of the Order (Section 32(3) of PAL)

In rules and regulations issued under PAL, a sanction in the form of a fine can be fixed if the rule or regulation is violated.

 

Section 29 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 authorises the fixing of sanctions.

 

A fine can be imposed on a party violating Sections 1-5 and Section 11 of the Order on disclosure of information for use in the tax calculation. For criminal liability to be incurred, intent or gross negligence must be displayed.

 

According to Section 30 of the Order, criminal liability can be incurred by companies etc. (legal persons) pursuant to the rules set out in Part 5 of the Danish Criminal Code upon violation of the Order.

 

Fine without prosecution (Section 33 of PAL)

SKAT can announce to the party committing the offence that the case can be decided without prosecution.

 

It is a condition for this that it is deemed that the offence would not result in a sentence exceeding a fine and that the party in question:

  • admits having committed the violation and
  • declares to be prepared to pay the fine indicated in the announcement within a specified deadline.

The deadline can be extended upon request. See Section 33(1) of PAL.

 

The rules set out in the Danish Administration of Justice Act (Retsplejeloven) on the requirements for the content of a bill of indictment and on the right of silence of a person charged apply correspondingly. See Section 33(2) of PAL.

 

The further prosecution is abandoned when

  • the fine has been paid in due time,
  • the fine has been collected following its acceptance, or
  • a sentence has been served in lieu of the fine.

See Section 33(3) of PAL.

 

Search (Section 34 of PAL)

Section 34 of PAL furthermore authorises searches pursuant to the rules set out in the Danish Administration of Justice Act in cases concerning the violation of the provisions of this Act to the extent that the violations can result in a custodial sentence.