42TAX

𝗧𝗿𝗮𝗻𝘀𝗳𝗲𝗿 𝗽𝗿𝗶𝗰𝗶𝗻𝗴 𝗱𝗼𝗰𝘂𝗺𝗲𝗻𝘁𝗮𝘁𝗶𝗼𝗻 𝗽𝗲𝗻𝗮𝗹𝘁𝗶𝗲𝘀 - 𝗗𝗮𝗻𝗶𝘀𝗵 𝗰𝗮𝘀𝗲 𝗹𝗮𝘄 𝗼𝗻 𝘀𝘂𝗯𝗺𝗶𝘀𝘀𝗶𝗼𝗻 𝗽𝗲𝗻𝗮𝗹𝘁𝗶𝗲𝘀 Cases on penalties are from the period prior to the mandatory submission introduced for income year 2021. There are two interesting cases from the period before 2021. The first case clearly states that the taxpayer’s internal routines cannot be used as an argument for not submitting documentation on time. In this case, SKM2018.584.BR, concerning income years 2011-2015, the District Court found that, while it recognized that a restructuring of the group implied that the taxpayer did not meet the deadline set by the Danish Tax Authorities, the taxpayer should have ensured preparation of documentation according to the regulations and adequate administrative processes ensuring that the right people receives mail correspondence from authorities. The District Court found that the taxpayer had acted grossly negligent. The taxpayer was fined DKK 625.000. In the second case, SKM2023.66.BR, concerning income years 2012-2016, the taxpayer had prepared and submitted master files for three out five years, and local file for one out of five years. During the audit the taxpayer had provided the authorities with all requested information. The District Court found that for three out of five years it had not been proven exactly which information had not been submitted within the deadline, and in the favor of the taxpayer fined for the two years income where the taxpayer and the tax authorities agreed that no documentation had been submitted. The taxpayer was fined DKK 250.000.

𝗡𝗲𝘄 𝗗𝗮𝗻𝗶𝘀𝗵 𝘁𝗿𝗮𝗻𝘀𝗳𝗲𝗿 𝗽𝗿𝗶𝗰𝗶𝗻𝗴 𝗿𝗲𝗴𝘂𝗹𝗮𝘁𝗶𝗼𝗻𝘀 – 𝘄𝗵𝗮𝘁 𝘄𝗶𝗹𝗹 𝗻𝗼𝘁 𝗰𝗵𝗮𝗻𝗴𝗲? Monday 3 March marked the deadline for submission of consultation responses to the proposed changes to the Danish documentation requirements. The proposed changes will introduce new thresholds for when to prepare transfer pricing documentation. While we await the adoption of the new regulations, there are a few things to keep in mind, especially as a small or medium sized Danish company: • Regardless of the anticipated new thresholds, intercompany transactions must still be categorized and reported as a part of the Danish corporate income tax return. • Transfer pricing documentation must still be prepared for intercompany transactions with individuals or companies in a foreign state with which Denmark does not have a double tax treaty, and at the same time is not a part of the EU or the European Economic Area. • Transfer pricing documentation must still be prepared for intercompany dealings with a permanent establishment in a foreign state with which Denmark does not have a double tax treaty, and at the same time is not a part of the EU or the European Economic Area. • Transfer pricing documentation must still be prepared for a Danish permanent establishment’s intercompany dealings with an individual or a company in a foreign state with which Denmark does not have a double tax treaty, and at the same time is not a part of the EU or the Economic European Area. If adopted, the changes will apply for the income year 2025. Feel free to reach out to us at CONTACT@42TAX.COM or +45 9310 4242 if you have questions on the Danish transfer pricing compliance requirements or would like us to assist in the preparation of your company’s transfer pricing compliance.

𝗗𝗲𝗮𝗿 𝗙𝗲𝗹𝗹𝗼𝘄 𝗘𝗮𝗿𝘁𝗵𝗹𝗶𝗻𝗴𝘀 𝗮𝗻𝗱 𝗡𝗮𝘃𝗶𝗴𝗮𝘁𝗼𝗿𝘀 𝗼𝗳 𝘁𝗵𝗲 𝗧𝗮𝘅 𝗖𝗼𝘀𝗺𝗼𝘀 In a universe where tax codes twist like the labyrinthine passages of a Vogon spaceship and fiscal deadlines appear as suddenly as a bowl of petunias, our humble tax advisory firm has managed to orbit the sun three times. Yes, three years of defying cosmic absurdity and corporate confusion! We extend our heartfelt thanks to our brilliant clients and interstellar business partners for entrusting us with the challenge of decoding the mysteries of taxation. Your support has been the rocket fuel behind our journey through this chaotic fiscal galaxy – a journey that has seen us tackle projects as daunting as an encounter with an alien bureaucracy and as exhilarating as discovering that the answer to life, the universe, and everything, is indeed 42. As we continue to chart unknown territories in the tax cosmos, we look forward to many more adventures where our accumulated experience turns the seemingly impossible into the delightfully plausible. So, in the spirit of cosmic exploration and with a firm “DON’T PANIC” in our hearts, here’s to boldly going where no tax advisor has gone before! Keep thriving and stay curious, 42TAX. Below a snapshot from Vienna where we spent two incredible days at the WU transfer pricing conference. With so many inspiring people in one place the room was buzzing non-stop. We are waiting in anticipation for the next conference.

𝗜𝗻𝘁𝗿𝗼𝗱𝘂𝗰𝘁𝗼𝗿𝘆 𝗿𝗲𝗺𝗮𝗿𝗸𝘀 𝗳𝗿𝗼𝗺 𝗹𝗮𝘀𝘁 𝘄𝗲𝗲𝗸’𝘀 𝗺𝗲𝗲𝘁𝗶𝗻𝗴 𝗶𝗻 𝘁𝗵𝗲 𝗦𝘂𝗯𝗰𝗼𝗺𝗺𝗶𝘁𝘁𝗲𝗲 𝗼𝗻 𝗧𝗮𝘅 𝗠𝗮𝘁𝘁𝗲𝗿𝘀 Thursday 6th of February, a meeting was held in the European Parliament's Subcommittee on Tax Matters (FISC) where Wopke Hoekstra, the Commissioner for Climate, Net Zero and Clean Growth, shared introductory remarks and answered questions from MEPs. In his introduction Wopke Hoekstra addressed that the US executive order is a regrettable development and further notes that global tax problems require global solutions and that commitment to obligations undertaken in the OECD remains. Wopke Hoekstra stated that the US and EU share an interest in curbing profit shifting to low tax jurisdictions and looks forward to engaging constructively with the new administration in the USA on Pillar I and Pillar II. We hope that steps towards constructive dialogue are taken sooner rather than later, as the significant workload of Pillar II attracts more and more attention with every day passing. Source: Introductory remarks by Commissioner Hoekstra at the European Parliament's Subcommittee on Tax Matters (FISC). https://lnkd.in/dbdBaMVx

𝗔𝘁 42𝗧𝗔𝗫 𝘄𝗲 𝗹𝗶𝗸𝗲 𝘁𝗵𝗲 𝗻𝘂𝗺𝗯𝗲𝗿 42 𝘀𝗼 𝗺𝘂𝗰𝗵 𝘄𝗲 𝗿𝘂𝗻 𝗳𝗼𝗿 𝗶𝘁! Last weekend Anja finished her first official marathon at Salomon Hammer Trail Winter 2025. Trails were very muddy adding to the challenge of 42.4 km and approx. 1,700 meters of elevation gain. The picture below shows relief of making the cut-off after spending the day running, climbing, and crawling for that number 42 🙂

𝗨𝗻𝗱𝗲𝗿𝘃𝗶𝘀𝗻𝗶𝗻𝗴 𝗶 𝘁𝗿𝗮𝗻𝘀𝗳𝗲𝗿 𝗽𝗿𝗶𝗰𝗶𝗻𝗴 Så er der præcist en uge til vi underviser i transfer pricing når TaxMaster afholder kurset Aktuel Skat.  Vi kommer bl.a. ind på, hvornår der er dokumentationspligt, oplysningsskemaet for kontrollerede transaktioner, dokumentation af omstruktureringer, og så skal vi naturligvis også tale om den seneste Højesteretsafgørelse på transfer pricing-området. Du kan stadig nå at tilmelde dig. Håber vi ses!

𝗡𝗲𝘄𝘀 𝗼𝗻 𝘁𝗵𝗲 𝗘𝗨 𝗖𝗼𝗺𝗺𝗶𝘀𝘀𝗶𝗼𝗻𝗲𝗿𝘀 𝗰𝗼𝗺𝗺𝗶𝘁𝗺𝗲𝗻𝘁𝘀 𝗼𝗻 𝘁𝗮𝘅𝗮𝘁𝗶𝗼𝗻 Friday 10 January, the European Parliament issued a briefing on the commitments made at the confirmation hearings of the Commissioners-designate for 2024-2029. Several commitments relate to taxation with plans to follow up in 2026, showcasing the focus on taxation within the EU. 𝗧𝗲𝗿𝗲𝘀𝗮 𝗥𝗶𝗯𝗲𝗿𝗮 𝗥𝗼𝗱𝗿í𝗴𝘂𝗲𝘇, 𝗘𝘅𝗲𝗰𝘂𝘁𝗶𝘃𝗲 𝗩𝗶𝗰𝗲-𝗣𝗿𝗲𝘀𝗶𝗱𝗲𝗻𝘁-𝗱𝗲𝘀𝗶𝗴𝗻𝗮𝘁𝗲 𝗳𝗼𝗿 𝗖𝗹𝗲𝗮𝗻, 𝗝𝘂𝘀𝘁 𝗮𝗻𝗱 𝗖𝗼𝗺𝗽𝗲𝘁𝗶𝘁𝗶𝘃𝗲 𝗧𝗿𝗮𝗻𝘀𝗶𝘁𝗶𝗼𝗻 Commitments include development of an action plan on affordable energy prices for companies and households, looking at all components of energy prices, including clean and energy taxation and financial markets for energy commodities, and taxes and pricing policies for the use of energy should be aligned with the long-term sustainable aims while contributing to closing the competitive gap.  Read more from p. 6. 𝗩𝗮𝗹𝗱𝗶𝘀 𝗗𝗼𝗺𝗯𝗿𝗼𝘃𝘀𝗸𝗶𝘀, 𝗖𝗼𝗺𝗺𝗶𝘀𝘀𝗶𝗼𝗻𝗲𝗿 𝗳𝗼𝗿 𝗘𝗰𝗼𝗻𝗼𝗺𝘆 𝗮𝗻𝗱 𝗣𝗿𝗼𝗱𝘂𝗰𝘁𝗶𝘃𝗶𝘁𝘆, 𝗜𝗺𝗽𝗹𝗲𝗺𝗲𝗻𝘁𝗮𝘁𝗶𝗼𝗻 𝗮𝗻𝗱 𝗦𝗶𝗺𝗽𝗹𝗶𝗳𝗶𝗰𝗮𝘁𝗶𝗼𝗻 Under the heading ‘Competitiveness and Tax Mix’ commitments are made to ensure development of focused tax policy recommendations, which support growth and competitiveness, equitable distribution of income, and promote the green transition. This should enable reduction of tax-related obstacles on cross-border investments as well as other fiscal and regulatory barriers between Member States. These initiatives support BEFIT and HOT which are believed to reduce tax obstacles on cross-border investments and increase competitiveness. Read more from p. 120. 𝗪𝗼𝗽𝗸𝗲 𝗛𝗼𝗲𝗸𝘀𝘁𝗿𝗮 𝘁𝗵𝗲 𝗖𝗼𝗺𝗺𝗶𝘀𝘀𝗶𝗼𝗻𝗲𝗿 𝗳𝗼𝗿 𝗖𝗹𝗶𝗺𝗮𝘁𝗲, 𝗡𝗲𝘁 𝗭𝗲𝗿𝗼 𝗮𝗻𝗱 𝗖𝗹𝗲𝗮𝗻 𝗚𝗿𝗼𝘄𝘁𝗵 Under the heading ‘Simplification, competitiveness, fairness’, Wopke Hoekstra states “So what I would actually want to suggest is that we take a review of the landscape, bring that also to Parliament, ideally already in in the year after next, so in 2026, to see where the opportunities are.”. Simplification and harmonization are named as top priorities, highlighting initiatives such as BEFIT (The Business in Europe: Framework for Income Taxation), HOT (Head Office Taxation System), and FASTER (Faster and Safer Tax Relief of Excess Withholding Taxes). Wopke Hoekstra will push in four dimensions, namely: climate action, competitiveness, a just transition, and the international dimension. Read more from p. 171. 𝗦𝗼𝘂𝗿𝗰𝗲: Commitments made at the confirmation hearings of the Commissioners-designate 2024-2029: https://lnkd.in/de363vQR.

𝗧𝗮𝘅𝗠𝗮𝘀𝘁𝗲𝗿𝘀 𝗔𝗸𝘁𝘂𝗲𝗹 𝗦𝗸𝗮𝘁 Onsdag d. 29. januar har vi i 42TAX fornøjelsen af at undervise i transfer pricing når TaxMaster afholder kurset Aktuel Skat. Fokus vil være på det, du som revisor, skatterådgiver eller inhouse skatteekspert med fordel kan være særligt opmærksom på her i 2025. Håber vi ses!

𝗛𝗮𝗽𝗽𝘆 𝗡𝗲𝘄 𝗬𝗲𝗮𝗿! We wish you all a happy and prosperous 2025! 

𝗛𝗮𝗽𝗽𝘆 𝗵𝗼𝗹𝗶𝗱𝗮𝘆𝘀! We, at 42TAX, wish you a peaceful and joyous holiday break.