Counter national and international tax evasion and organised economic crime
To counter national and international tax evasion and organised economic crime, a new expert control unit has been established. The expert unit will continually develop effective detection prevention and control strategies to counter tax evasion and tax fraud. To ensure the integrity and credibility of the tax administration, a higher percentage of its employees’ tax files will undergo annual control.
This commitment specifies how a higher percentage of the tax administration’s employees and tax files will undergo more control. It is also specified that the expert unit will develop new, effective detection prevention and control strategies to counter tax evasion and fraud. It is not clear, though, how the expert unit will fulfil that goal.
First, it can be determined whether an expert unit has developed and whether tax administration employees’ tax files have undergone annual control since the commitment was stated (compared to a set baseline). Furthermore, it can be examined if the work of the expert unit has achieved any notable outcomes. Even though no baseline or target values have been specified, a comparison can be made, for example, over two years.
The Center for Combatting International Tax Evasion (CEBIS) has been established and has approximately 100 employees in 2020. As part of the added funding, 30 additional employees will be added to CEBIS. CEBIS conducts risk analyses to improve their ability to detect and prevent tax evasion. Furthermore, CEBIS handles data related to leaks with the goal of conducting risk-based audits.
The employees in the Danish tax administration are subject to control as to whether they pay the correct amount in tax and duties as provided for by Danish law. Additionally, justified controls of specific individuals may always be initiated on an ad hoc basis by directors/deputy directors in the respective tax agencies. Finally, all employees of the tax Ministry and Administration may be subject to controls as part of the tax authorities’ usual controls of Danish citizens’ tax files.