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Danish tax minister announces measures to deal with VAT fraud

TheCopenhagenPost
January 29th, 2016


This article is more than 8 years old.

The state misses out on up to 18.5 billion kroner in tax revenue from unpaid moms

Earlier this week it was reported that Danish companies that had defrauded the Danish tax authority SKAT of 30 million kroner in moms (VAT) were implicated in financing overseas terrorism. Today Karsten Lauritzen, the tax minister, announced targeted checks against moms fraud and a re-examination of the system to deal with the problem.

READ MORE: Danish companies implicated in fraud schemes to finance terror in Syria 

“It is completely unacceptable when organised criminals knowingly cheat society out of moms and duties. We should make it easy for the many who follow the rules, but we should also come down hard on those who systematically cheat Danish society,” Lauritzen said.

“I have therefore just submitted a number of initiatives to Parliament’s taxation committee, which will strengthen the fight against cheating with moms and duties.”

As well as re-examining the moms system and targeting organised fraud, it will be investigated how public authorities can work together to share knowledge and data to tackle the problem.

Børsen reports that, according to figures from the International Monetary Fund (IMF), the state misses out on between 10.5 and 18.5 billion kroner in tax revenue because companies do not report and pay the moms they should.


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A survey carried out by Megafon for TV2 has found that 71 percent of parents have handed over children to daycare in spite of them being sick.

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.

Pill pushers
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.”