The Treasury of Denmark said Wednesday it had ordered an investigation into what could be the biggest tax fraud in the country’s history, with more than 800 million euros ($ 1.2 billion).
“During the summer we became suspicious after receiving information from authorities in another country. Our own internal investigation has strengthened these suspicions and we have forwarded the file to the police, “said a statement from the director of the Treasury, Jesper Ronnow Simonsen.
Questioned by AFP, a spokesman for the IRS declined to reveal the name of the country concerned.
The case concerns the gains made by companies on the Danish stock market, including dividends. These are normally taxed at 27%, but the tax treaties signed by Denmark with certain countries allow recipients based in these countries to be reimbursed for all or part of that tax if it also exists in other countries.
According to Mr. Simonsen, the Treasury internal investigation indicates that “a vast network of companies based abroad have apparently requested a refund of taxes on dividends fictitious holdings, based on forged documents “.
“Fraud estimated for undue refunds was calculated on the basis of 2120 requests a total amount of about 6.2 billion kronor (about $ 1.26 billion) between 2012 and 2015”, detailed the Treasury .
Repression section of the international financial delinquency Danish police stressed that this case was a priority
“It may be that we have subtracted the Treasury and society amounts quite considerable, so we work hard to see if there is the possibility to mount a criminal record. We have a detailed survey before us, “said in a statement the prosecutor handling the case, Morten Niels Jacobsen.
Neither the IRS nor the police wanted to give details on the companies potentially involved.