Limitation of Tax Demands
The rules on time limits are a bit of a jungle. Different time limits apply, depending on who you are and the taxation concerned. Therefore, it is always a good idea to obtain an assessment of whether the tax authorities have complied with the time limits in your case.
The general rule is that all tax assessments must be correct. However, neither the tax authorities nor individual citizens can freely adjust assessments for previous financial years; after a certain time, a tax assessment must be final. The Danish Tax Administration Act contains explicit rules on time limits for making changes – both as regards changes initiated by the tax authorities and as regards changes initiated by individuals.
If you have been notified by SKAT that they want to make changes to your tax assessment, you should be very aware of the applicable statutory time limits as cases can also be won if the appeal body or the courts do not agree with SKAT that extraordinary grounds for reassessment exist.
Time limits also apply if, as a taxpayer, you want to change a previous tax assessment yourself. The time limits depend on the taxation concerned, and can depend also on the reason for requesting the change. In addition, so-called reaction time limits apply if requests for reassessment concern tax years far back in time. It is therefore important to take action as soon as you realise that something should be changed.
Our advisory services cover, for example:
- Eligibility for reassessment
- Requesting a reassessment
- Appeals against a refusal of reassessment
