Business
Tax debt sets new record
This article is more than 13 years old.
Authorities plan to garnish wages of those who owe back taxes
DenmarkÂ’s tax debt is skyrocketing. As of September 30, individual taxpayers and companies owed a total of 57.2 billion kroner to the government. ThatÂ’s equal to 10,259.50 kroner for every man, woman and child.
Between 2009 and 2010 the tax debt grew by 3.6 billion kroner, from 49.9 to 53.3 billion. Debt increased by the same amount in just nine months this year, reports Avisen.dk, based on Tax Ministry figures.
The tax minister, Thor Möger Pedersen (Socialistisk Folkeparti) will continue to put pressure on those who back taxes – be they individuals or companies.
“In terms of individual taxpayers, [tax agency] Skat has taken advantage of the new rules that let us garish the wages of people who have unpaid parking tickets, ticket train fines and TV license fees,” said Pedersen. “We expect to make salary deductions from 90,000 debtors by the end of the year.”
Taking money directly from debtorsÂ’ salaries will net the government a billion kroner.
Never before have so many Danes been threatened to have their wages garnished.
Meanwhile, Skat has also begun chasing company arrears by approaching businesses directly at their corporate offices.
Unfortunately, 40 billion kroner worth of the unpaid taxes will be all but impossible to recover, because that amount is owed by companies that have gone bankrupt or been protected from their creditors.
Join the debate – join us on Twitter or Facebook, or leave a comment below.
SEE RELATED STORIES
Crackdown on cash-in-hand customers
Minister to close loopholes on tax-avoiding multi-nationals
Note to readers: The Copenhagen Post will now refer to national political parties by their Danish names and abbreviations. DOWNLOAD The Copenhagen Post’s overview of Danish political parties.