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Tax authority can forget about outstanding billions

Christian Wenande
April 25th, 2017


This article is more than 7 years old.

PwC estimates that some 80 billion kroner will probably never be recovered

SKAT again under fire (photo: SKAT)

According to a new report compiled by the auditor firm PricewaterhouseCoopers (PwC) on behalf of the Tax Ministry, the Danish state can most probably wave goodbye to billions of kroner owed by citizens.

The report evaluated that of the 100 billion kroner the Danes owe the state in taxes, parking fines, speeding tickets, VAT and DR licence fees, the vast majority (about 80 billion kroner) will never been recouped.

“It’s not viable to say there is 100 billion out there and that we can get it in our coffers to use on welfare,” Karsten Lauritzen, the tax minister, told Politiken newspaper.

READ MORE: Danes owe the state over 90 billion kroner on unpaid tax and fines

Time to write it off
It seems the EU and state auditor concur with that assessment because they’ve both asked the Tax Ministry to change the government’s accounts to reflect that the 100 billion kroner will not be obtained.

As such, Lauritzen said he would ensure that the accounts would reflect a more realistic amount.

Public debt has grown steadily since the government axed the failed IT system, EFI. Between the second and third quarter last year alone, public debt increased by 3.6 billion kroner.

Damm-ing words
Martin Damm, the mayor of Kalundborg, was quick to blame the beleaguered tax authority SKAT – which already faces intense scrutiny and criticism for the missing 12 billion kroner case – for the problems.

“It certainly isn’t us [the municipalities] that have messed up,” Damm told Politiken.

“The state tax authority has. It has taken over the responsibilities from the municipalities and consequently ended up driving the entire recovery process into the ground.”


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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.

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.”