Taxation of Company Cars

The rules governing the taxation of the value of company cars have given rise to a number of tax cases over the years and continue to do so.

SKAT regularly brings cases regarding the taxation of the value of company cars. Many of these cases concern a principal shareholder who has the use of a car for business travel. SKAT is of the opinion that taxation of the value of company cars can only be avoided in such cases if a complete log book can be presented which shows only business travel.

However, this is not correct as we have won a number of cases concerning the taxation of the value of company cars where no meticulous log book was kept. Taxation depends, in fact, on an overall assessment of:

  • whether the car in question is actually used for business purposes,
  • whether the principal shareholder can document that private travel is done using private cars, and
  • whether SKAT has observed the car being used for private purposes.

Cases concerning the taxation of the value of company cars are brought by SKAT in relation to cars registered with all types of number plates (white, yellow and so-called parrot plates). The rules on the burden of proof vary according to how the car is registered.

Special rules apply to specially fitted-out vans. Vans are individually assessed to determine whether they are fitted out for special purposes. TVC Law Firm has won a number of leading cases in this respect.

We have considerable experience conducting and winning cases concerning the taxation of the value of company cars. It is very important that cases concerning the taxation of the value of company cars are handled correctly from the outset. Consequently, we suggest that you contact TVC Law Firm if you have received an inquiry from SKAT regarding the taxation of the value of a company car.

SKAT is bringing an increasing number of criminal proceedings in the wake of cases concerning the taxation of the value of company cars. TVC Law Firm can also assist with any criminal law issues.

Contact

Torben Bagge

Partner, Attorney-at-Law (H), Head of tax and Chairman of the board

D: +45 87 34 75 30

M: +45 24 82 24 84

E: tb@tvc.dk

Leo Jantzen

Manager, Partner, Attorney-at-Law (H)

D: +45 87 34 75 31

M: +45 21 37 01 38

E: lj@tvc.dk

Kasper Bech Pilgaard

Partner, Attorney-at-Law (L), LL.M.

D: +45 33 18 61 58

M: +45 24 27 78 11

E: kbp@tvc.dk

René Bjerre

Partner, Attorney-at-Law (H)

D: +45 87 34 74 34

M: +45 25 34 53 10

E: rbj@tvc.dk

Henrik Rahbek

Partner, Attorney-at-Law (H), HD (R)

D: +45 87 34 74 32

M: +45 30 88 20 88

E: her@tvc.dk

Karin Østergård Mathiasen

Partner, Attorney-at-Law (H)

D: +45 87 34 74 31

M: +45 30 33 75 80

E: kl@tvc.dk

Kasper Kelm Demant

Partner, Attorney-at-Law (L)

D: +45 87 34 74 36

M: +45 51 92 53 58

E: kkd@tvc.dk