VAT criminal proceedings against audit firm dismissed
A greater audit firm was charged with infringement of the Danish Value Added Tax Act together with a client for having provided incorrect information for the purposes of tax control.
The client imported used cars from abroad and resold them in Denmark. All invoices were affixed with a text by the client stating that the imported cars were sold under the VAT arrangements for second-hand goods. Meanwhile, the Danish Tax and Customs Administration had determined that the conditions for applying the second-hand VAT rules were not fulfilled, and therefore the reported VAT was declared too low.
The audit firm had assisted the client with the preparation of accounts, bookkeeping, etc., including the preparation of a VAT letter for the client’s VAT reporting.
The Public Prosecution Department requested that the audit firm, like the client, should be fined tens of millions of Danish kroner.
Claus Hedegaard Eriksen represented the audit firm in the criminal proceedings, in which the proceedings against the audit firm were dismissed.