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Danish tax authority demands huge compensation figure from IT firm

TheCopenhagenPost
September 14th, 2016


This article is more than 8 years old.

System failure could cost KMD over half a billion kroner

Karsten Lauritzen, the tax minister, is suing KMD (photo: Danish Tax Ministry)

The Danish tax minister, Karsten Lauritzen, is demanding that the IT firm KMD pay 692 million kroner to SKAT, the national tax authority, due to ongoing problems with the EFI tax recovery system.

According to Børsen, Lauritzen has sent a letter to KMD asking for compensation.

“SKAT’s recovery system has not worked for years,’ Lauritzen wrote.

“Part of that responsibility lies with SKAT , but both the attorney general and SKAT have assessed that KMD has not delivered what was agreed to, and that has caused serious problems.”

See you in court
KMD, which is part of a consortium that delivered the recovery solution, said it was “shocked”.

“This action is unreasonable,” said KMD’s legal director Mark Nielsen. “We look forward to settling the matter in court.”

READ MORE:New governmental IT disaster raises old questions

The EFI system was originally scheduled to be up and running in 2007, but it did not go into service until 2013.

State accountants continuously criticised the system, which was finally put out to pasture last September, leaving tax-payers with a 14 billion kroner bill for a system that SKAT says never functioned correctly.


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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.”