Scandal: 12 international banks secretly allowed to influence Danish corporate income tax law, some complicit in tax fraud.

According to TV2, after 12 of the world's largest banks met with the tax ministry, requirements were removed from a bill that was supposed to stop fraud. A group of 12 international banks was allowed to secretly influence a bill when the Danish government tried to prevent a new tax scandal on dividends in 2018.

This appears from the book “For the Business Life” written by DR journalist Jesper Tynell, according to Politiken, which was published on Tuesday.

Delete two clauses
Two points were removed from the bill after some of the world's largest banks met with officials at the tax ministry. The two rules were supposed to make it easier to identify the owners behind shares that required dividend payments. The banks' argument for wanting the rules removed was that international investors would bypass Danish shares if the bill became a reality. The two rules were removed when the government later submitted the bill.

The collusion between the banks and Denmark will cost billions.
The tax fraud case with dividend refunds cost the Danish treasury at least 12.7 billion Danish kroner in the years 2012 to 2015, and eight out of a total of 12 banks had cases of collusion in tax fraud on dividends or their misuse.

According to the source, the tax ministry told Politiken that “there is nothing unusual about the fact that international stakeholders affected by Danish legislation are providing input for future legislation,” and the newspaper wrote that the bill in question did not bear fruit.

Former tax minister remains silent
Eight years on, the Danish tax authority is still working on a model that would make it possible to verify that an applicant is indeed entitled to a profit tax refund, and according to Politiken, the Danish parliament has not been informed of anything about the banks' involvement.

The newspaper provided the information to Carsten Lauritzen, the former tax minister for the Liberal Party of Venstre in 2018 and 2019. The information was also provided to the current Minister of Defense, Morten Bodskov, when he was tax minister at the time the bill was introduced. According to the source, neither minister wants to comment.