Contents

This section describes the rules applying when SKAT wants to change the final statement or the calculation. This section further describes the possibility open to the person liable to taxation of filing a complaint about the bank's or pension provider's statement.

 

The section covers

  • Rule
  • Notification of changes to bank or pension provider
  • Possibility open to the person liable to taxation of filing a complaint about the bank's or pension provider's statement etc.
  • Settlement of PAL tax and interest in connection with PAL tax changes

 

Rule (Section 27(1) of PAL)

SKAT checks the statements and the tax calculations made under Sections 21-25 of PAL.

 

SKAT may change the statement and the calculation if SKAT deems that the final statement or calculation under Sections 21-25 of PAL is incorrect.

 

SKAT can further change the statement and the calculation following a request to this effect from the bank or pension provider.

 

Notification of changes to bank or pension provider (Section 27(2) of PAL)

If SKAT wants to change the PAL tax, SKAT must notify the party which has submitted the statement of

  • the possible change in the tax,
  • the reason for such change, and
  • the right to file a complaint about the decision with the Danish National Tax Tribunal.

 

Procedure

Before SKAT makes a decision, SKAT sends a provisional decision to the party which has submitted the statement notifying this party that the notified change will be made unless SKAT receives comments within a specified deadline. This deadline must not be less than 15 days counted from the date of the provisional decision. The provisional decision must describe the changes of the PAL tax and the reasons for these. See Section 20 of the Danish Tax Administration Act (Skatteforvaltningsloven (SFL)).

 

The provisional decision must contain the particulars of the case. See Section 19 of SFL.

 

Decision

After the expiry of the deadline for comments, SKAT makes a decision based on the information in the provisional decision and any comments received.

 

The decision must include information on the right to file a complaint with the National Tax Tribunal.

 

Pension plans mentioned in Section 1(1) of PAL

If the change concerns a change of the PAL tax for pension plans mentioned in Section 1(1) of PAL, the bank or pension provider forwards a notice to the person liable to taxation within 4 weeks of the bank or pension provider having received the decision to change the PAL tax.

 

Filing a complaint about the decision

A complaint about SKAT's decision can be filed with the National Tax Tribunal within 3 months of the decision being awarded at the latest. See Section 11(1), Item 1 of SFL.

 

The complaint must be in writing. It must appear from the complaint in which areas the decision is deemed to be incorrect and why this is so, cf. Section 2(3) of Danish Order no. 974 of 17 October 2005 on the rules of procedure of the National Tax Tribunal.

 

The following must be submitted with the complaint (in original or copy):

  • The decision about which the complaint is filed
  • The particulars of the case which have been sent to the complainant 
  • Documents which the complainant wants to produce as evidence

 

The National Tax Tribunal can fix a deadline within which questions can be answered or additional information submitted.

 

If a complaint is structured or reasoned in such a way that it cannot serve as the basis for the further consideration of the case, the National Tax Tribunal can grant the complainant a deadline within which to remedy the situation.

 

If the complaint does not comply with the formal requirements, the National Tax Tribunal can dismiss the complaint, cf. Section 42(3) of SFL.

 

See Procedural Rules within SKAT's Area 2008-2 (Processuelle regler på SKATs område), Section H.3.4,, Filing complaints with the Danish National Tax Tribunal.

 

Note

When filing a complaint with the National Tax Tribunal, it is possible to apply for a reimbursement of expenses relating to expert assistance. See Procedural Rules within SKAT's Area , Section K, Cost reimbursement.

 

Possibility open to the person liable to taxation of filing a complaint about the bank's or pension provider's statement etc. (Section 27(3) of PAL)

The pension holder liable to taxation can bring the bank's or pension provider's statement of the basis for taxation or calculation of PAL tax under Sections 21 and 22 and Section 23(1) of PAL before the National Tax Tribunal if these are deemed to be incorrect.

 

A complaint about the bank's or pension provider's statement of the basis for taxation or calculation must be filed within 3 months of receipt of the notification under Sections 21 and 22 and Section 23(1) of PAL at the latest.

 

The pension holder must enclose a statement from the bank or pension provider on the calculation of the PAL tax and indicate in which areas the pension holder believes that the PAL tax has been determined incorrectly as well as the bank's or pension provider's comments thereon.

 

See Procedural Rules within SKAT's Area, Section H.3.4, Filing complaints with the Danish National Tax Tribunal.

 

Settlement of PAL tax and interest in connection with PAL tax changes (Section 27(4) and (5) of PAL)

If a change means that a final PAL tax amount is reduced, SKAT refunds the overpaid PAL tax within 6 weeks of the decision.

 

If a change means that a final PAL tax amount is increased, the remaining PAL tax amount must be paid within 6 weeks of the decision.

 

Interest on the changed PAL tax

The payment of additional PAL tax and the refund of overpaid PAL tax take place with interest added. See Section 27(5) of PAL.

The applicable interest rate is published by SKAT.

The interest rate is a simple average of the effective interest rates determined on a daily basis by the OMX Nordic Exchange, Copenhagen, Denmark, in the first 7 months of the year prior to the year of taxation on bonds with a term to maturity of more than 5 years.

The interest is calculated from 1 January in the year after the year of taxation until payment is made.

As concerns back payment of PAL tax payable, this amount, however, only carries interest until the final due date for payment under Section 27(4) of PAL, i.e. within the 6-week deadline. Subsequently, default interest is payable under Section 28 of PAL. See section D.3, Default interest.

Interest on tax due under Section 27 of PAL can be deducted from the basis of taxation in the year of payment, and interest on overpaid tax under Section 27 of PAL must be included in the basis of taxation in the year of payment. See Section 4(1) and Section 9, cf. Section 15(1), of PAL.