The Danish Debt Collection Agency and the Danish Tax Agency have refuted claims of a change in practice regarding the bankruptcy filings of companies. This response follows criticism from tax lawyer Torben Bagge, as published in Berlingske on May 15, alleging that the Tax Agency is filing for bankruptcy of otherwise healthy companies.

According to officials, the agencies are tasked with ensuring the payment of taxes and duties by citizens and businesses, both on an ongoing basis and through collection efforts.

The Tax Administration’s capabilities to combat economic crime were bolstered in December 2023 with the enactment of new legislative tools. These tools empower the Danish Tax Agency and the Danish Debt Collection Agency to intervene when there is a tangible risk of assets being moved, potentially abroad, to avoid covering public debt.

In such instances, the agencies can freeze funds in banks and subsequently petition for the company’s bankruptcy, allowing the Bankruptcy Court to appoint a trustee to secure the assets.

Officials noted that the Tax Administration utilizes these measures sparingly, given the gravity of the intervention.

They maintain that the freezing and securing of company funds and assets, concurrent with filing for bankruptcy, occurs in very limited cases.

Therefore, the agencies assert there is no fundamental violation of due process principles.

Furthermore, they deny having altered their practices or disproportionately increased their use of the tools provided by the Danish Parliament.

Officials emphasized that the tools are applied with due consideration and respect for the due process rights of citizens and businesses.

Thomas Hjortenberg serves as the director of the Danish Tax Agency, while David Fjord Nielsen is the director of the Danish Debt Collection Agency.