The Danish Tax Agency has discovered that 90% of companies selected for closer inspection have defrauded the treasury by failing to pay mandatory tax and VAT. These inspections, conducted between 2020 and 2024, have resulted in the collection of over four billion kroner.

According to new figures released by the agency, nearly 12,000 inspections were carried out during this period. Companies are employing tactics such as using subcontractors, straw men, shell companies, and fictitious invoices to avoid their tax obligations. This practice, known as chain fraud, makes it difficult for authorities to identify and hold accountable those responsible for paying tax and VAT.

Tax Minister Rasmus Stoklund (S) condemned chain fraud as “planned theft from the community and proven fraud that undermines our common trust in the tax system.” He emphasized that this goes beyond simple loopholes and paperwork.

The Danish Tax Agency selects control sites based on risk and materiality assessments made by the agency, the police, and other authorities. The largest collections occurred in 2021, with just over one billion kroner recovered from companies. In 2024, 782 million kroner was collected.

Since 2024, the Danish Tax Agency has been authorized to withdraw companies’ registrations and hold management financially responsible. In certain cases, the agency can also withhold funds in bank accounts. These measures are intended to deter companies from engaging in chain fraud by making it more difficult and less appealing.

The agency hopes that these efforts will help curb organized tax fraud in the future. The documentary ‘The Black Swan,’ which aired in 2024 and was viewed by over two million people per episode, highlighted how fictitious invoices and straw men are used to commit financial fraud, raising public awareness of the issue.