A client, with the assistance of Bachmann/Partners Law Firm, obtained a ruling confirming that interest should not be charged for late reporting and payment of dividend tax.

At a general meeting on 3 February 2022, the client approved a dividend distribution of DKK 20 million. Due to an error, the dividend tax was not reported and paid correctly. This was only discovered in December 2022, at which time the dividend tax was properly reported and paid.

In December 2022, the client received a notice from the Danish Tax Agency, indicating that a reminder fee and a very small amount of interest were due.

In January 2023, the client received a further notice showing a six-figure debt to the Tax Agency consisting of interest for the late payment of dividend tax.

Following a request, the Tax Agency amended this interest calculation, because the legal basis for charging interest on late reporting and payment of dividend tax only came into effect on 15 June 2022. Prior to that date, taxes, including dividend tax, that were not paid on time had to be paid no later than 14 days after a formal demand. Since the client reported and paid the dividend tax in December 2022, when the issue was discovered—and never received a formal demand—interest could not be charged.

Bachmann/Partners Law Firm handles appeals in all tax and duty-related matters. Inquiries can be directed to Christian Bachmann at +45 30 30 45 21 / chb@bachmann-partners.dk or Peter Hansen at +45 40 32 35 35 / pha@bachmann-partners.dk.