Denmark Tax Agency Clarifies Liability of Sole Shareholder for Outstanding Taxes in Dissolved Company

The Danish Customs and Tax Administration Jan. 20 posted online National Tax Court Decision No. SKM2026.39.LSR, clarifying the liability of a sole shareholder for outstanding taxes in a dissolved company. The taxpayer, a dissolved company’s sole shareholder and former managing member, was held liable by the Tax Agency for unpaid corporate taxes following increases in the company’s assessments for 2013-2018. On appeal, the National Tax Court found that: 1) liability applies only where a company is dissolved and assets are distributed as part of that dissolution; 2) earlier distributions made before the formal liquidation decision didn’t qualify as dissolution distributions ...