The Danish market is still being buffeted by economic volatility, note commentators, and this is having an inevitable knock-on effect for tax advisers.
"The Danish marketplace is affected by the crisis. Activities are down in tax services market," said ...
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The Danish market is still being buffeted by economic volatility, note commentators, and this is having an inevitable knock-on effect for tax advisers.
"The Danish marketplace is affected by the crisis. Activities are down in tax services market," said one partner.
"The government has little liquidity and don't want to borrow or increase taxes so they are looking to release cash from elsewhere," said an adviser. An inevitable consequence of this approach is a more robust attitude to tax collection.
"There is an increasing focus from the tax authorities in audits. The documentation is more in focus. Some people took a relaxed attitude to it before but now they realise that it is serious, and that they need to adapt," said Deloitte's Lars Loftager Joergensen. "We are receiving a lot of letters, a lot more audits, and with increased ambition. They are giving us a hard time," added another.
Transfer pricing is another area that has faced more scrutiny. "TP audits concerning beneficial ownership with regard to PE (private equity) funds are a particular target. They have increased TP penalties too," said one transfer pricing specialist.
This new belligerence has had the inescapable impact of producing more litigation: "Litigation is of course more and more visible. The authorities are active, so we will see more of it. It has raised new issues," said Ole Schmidt of the newly-formed Accura Tax.
It's not complete doom and gloom, however: "Institutional investments are busy, with pension funds investing in large infrastructure projects and assets for instance. Shares and bonds and other normal stuff are picking up a bit too," said one corporate tax adviser.
"One sector that experiences an international interest is healthcare. International Danish transactions featuring huge American corporations and funds. The healthcare companies have a lot of value and high potential in them and American investors are interested," adds Schmidt.
The market has seen its own upheavals this year. In January 2012, the law firm of Lind Cadovius was dissolved. The tax team went to a number of firms, including Bech-Bruun – Taxand, Bruun & Hjejle, Nielsen Norager and law firms Lett and Lind.
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