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Business

Minister wants to stop country from being used as a tax haven

admin
November 6th, 2014


This article is more than 10 years old.

Government intends to crack down on misuse of Danish companies

The minister for business and growth, Henrik Sass Larsen, announced yesterday a new set of law proposals designed to stop Denmark being used as a tax haven.

The move comes in the wake of a wave of media attention around the issue.

In recent weeks, Børsen has published a number of articles about eastern Europeans using Danish structures for tax evasion, fraud and money-laundering.

And last week, DR’s P1 broadcast a documentary programme about foreigners using Danish companies for shady dealings.

READ MORE: Danish companies being misused for international economic crime

Papers influencing policy
Larsen told Børsen that this has directly contributed to the new proposals.

“We need to react to it. And that’s what we’re doing now,” he said.

According to the new proposals, the Danish business authority Erhvervsstyrelsen will get an extra 4 million kroner annually to strengthen its efforts to conduct inspections of so-called ‘company manufacturers’ – firms that set up corporate structures on a commercial basis.

For some time it has been planned to set up a public register of all Danish companies with details of their ultimate beneficial owner.

Larsen announced yesterday that this register will also include limited partnerships (kommanditselskaber), which had previously been exempted.

“It should be noted that there are people who misuse exactly limited partnerships,” Larsen said. “We want to stop that.”


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Moreover, 21 percent of those surveyed admitted to medicating their kids with paracetamol, such as Panodil, before sending them to school.

The FOLA parents’ organisation is shocked by the findings.

“I think it is absolutely crazy. It simply cannot be that a child goes to school sick and plays with lots of other children. Then we are faced with the fact that they will infect the whole institution,” said FOLA chair Signe Nielsen.

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At the Børnehuset daycare institution in Silkeborg a meeting was called where parents were implored not to bring their sick children to school.

At Børnehuset there are fears that parents prefer to pack their kids off with a pill without informing teachers.

“We occasionally have children who that they have had a pill for breakfast,” said headteacher Susanne Bødker. “You might think that it is a Panodil more than a vitamin pill, if it is a child who has just been sick, for example.”

Parents sick and tired
Parents, when confronted, often cite pressure at work as a reason for not being able to stay at home with their children.

Many declare that they simply cannot take another day off, as they are afraid of being fired.

Allan Randrup Thomsen, a professor of virology at KU, has heavily criticised the parents’ actions, describing the current situation as a “vicious circle”.

“It promotes the spread of viruses, and it adds momentum to a cycle where parents are pressured by high levels of sick-leave. If they then choose to send the children to daycare while they are still recovering, they keep the epidemic going in daycares, and this in turn puts a greater burden on the parents.”