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Concern over falling corporate tax revenue
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August 12th, 2010
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This article is more than 14 years old.
Half of all companies had at least one zero-tax year between 2006 and 2008
A Tax Ministry investigation into companies’ tax payments for the period 2006-2008 shows that half closed out at least one year owing no taxes. Tax Minister Troels Lund Poulsen described the results as a direct indication that tax evasion was taking place.
The investigation shows that during the given time period – a period of economic growth – only half of the firms paid taxes and, for 28% of companies, the report shows that they paid no taxes during the entire three-year period.
Poulsen was surprised by the figures, and some of the country’s other political parties are now stating that they want an explanation from the minister in the case.
The Confederation of Danish Industry, however, said it was normal that companies had periods when they made major investments which could be deducted from their taxes.
The report shows that companies’ tax payment for the years 2006-2008 fell by 17.3 billion kroner, from 50.5 billion kroner to 33.2 billion kroner.
Poulsen will now ask the Tax Ministry to look into the figures and the companies more closely.
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