Denmark upholds Panama Papers evidence in tax assessments

SKAT bought leaked Mossack Fonseca material in 2016 to begin tax investigations. The court held that using it formed part of statutory tax control. It also found that the authorities had checked the information underlying their decisions and given sufficient reasons for the assessments.^[1]

Section 10 of the Act on safeguards concerning administrative coercive measures and disclosure obligations protects individuals and legal persons specifically suspected of an offence carrying a penalty. Compulsory disclosure provisions do not apply to that suspect unless the information can be excluded from relevance to the suspected offence. The authority must explain the right not to provide potentially relevant information.^[2]

The court distinguished that criminal-procedure protection from the accuracy of a tax assessment. Possible nonobservance during administrative tax proceedings did not make the assessments invalid. The judgment does not abolish the statutory protection or establish unrestricted compulsory disclosure.^[1][2]

The court also affirmed the substantive assessments. This focused procedural brief does not derive a general dividend rate, residence rule or reopening entitlement from the case.^[1]

Groups responding to investigations should distinguish disclosure safeguards from substantive assessment exposure. The decision does not establish a new return deadline, tax rate or blanket filing exemption.^[1][2]