Leasing of Vehicles
Leasing of Vehicles
Legal expertise from the industry’s leading leasing lawyers
Whether it concerns financial leasing or operational leasing, we have specialized in leasing and registration tax.
Whether it is financial or operational leasing, we are experts in leasing and among Denmark’s leading lawyers in this field. With our many years of experience, we continuously handle landmark appeal and court cases against the tax authorities for the leasing industry.
We continuously handle landmark appeal and court cases against the tax authorities for the leasing sector.
Our assistance to leasing companies includes, among other things:
- Establishment of leasing companies and the necessary registrations, including registration for proportional tax (self-reporting scheme)
- Strategic and legal advice in relation to establishment
- Taxable value for company cars
- Split leasing
- Taxable value for company cars
- Split leasing
- Handling cases concerning registration tax and proportional registration tax in relation to leasing
- Handling the revocation of leasing companies’ self-reporting schemes
- Handling cases of joint liability for registration tax
- Handling cases of confiscation due to reckless driving
- Handling cases of reopening as a result of overturned practices
- Handling other cases related to leasing and registration tax
Landmark cases – with implications for the entire industry
Landmark cases – with implications for the entire industry
For example, we won a case in the courts where the Motor Vehicle Agency had invalidated a company’s leasing agreements as lacking substance, because the payment of the extraordinary initial installment was made via set-off with the dealer, and therefore the Agency had charged full registration tax on three vehicles. The court concluded that ordinary contractual arrangements cannot render a leasing agreement unreal. This ruling has far-reaching implications for a large number of similar cases and gives other leasing companies access to reopening in comparable cases. You can read more about the case here.
Here you can read about another registration tax case we won in the High Court. The case concerned the recalculation of registration tax when a leased vehicle exits the proportional registration tax scheme.
A selection of our other won cases can be found here.
Contact us today for assistance
Current Focus Areas in the Leasing Industry
We are currently seeing a number of cases where the Motor Vehicle Agency revokes original decisions regarding proportional registration tax if a leased vehicle is not returned on time. This often occurs several years after the lease has ended, when the vehicle has already been resold.
The consequence is that the leasing company is charged full registration tax for a vehicle they no longer own.
This is particularly problematic when the vehicle has been resold after the lease period. The leasing company is left with a bill for full registration tax on a vehicle they no longer possess.
Since the vehicle may have changed hands multiple times, it can even be impossible for the leasing company to identify the current owner at the time the company pays the tax, especially because the Motor Vehicle Agency will not release this information. At the same time, only the new owner can request an export refund for the vehicle, meaning the leasing company is unable to limit its loss to the export deduction, for example, by exporting the vehicle.
We assess that the Motor Vehicle Agency, in relation to the above issue, introduces several unlawful requirements and deadlines for leasing companies – and we have previously won similar cases, where we were upheld in arguing that the Motor Vehicle Agency acted without legal authority.
Contact one of our skilled leasing lawyers
Do you need advice on leasing or registration tax, or are you facing a case with the Motor Vehicle Agency?
Our experienced team is ready to assist.
Contact us today for a non-binding meeting about your case.
Contact us today for a non-binding meeting about your case.
Regardless of your situation, we can help you create the most advantageous solution. We have Denmark’s best
team of lawyers and experts, so you can be confident you are receiving the best advice.
We have offices in Copenhagen, Aarhus, and Aalborg, so you always have access to tax advice near you.
Contact us today
- +45 33 23 90 90
- kontakt@bachmann-partners.dk
Or fill out the form to learn more about how we can help you or to book a meeting with us.