New data reveals that the Ministry of Taxation wins in 92% of cases against citizens, raising concerns about legal fairness and citizens’ ability to challenge tax decisions. This figure, observed in 2024 across district, high, and Supreme Courts, mirrors similar trends in previous years, with a 93% success rate in 2023. Experts and former officials highlight the unequal playing field due to the ministry’s vast resources and specialized knowledge.
The imbalance stems from several factors, including the Ministry of Taxation’s unlimited resources and insider knowledge, making it difficult for citizens to compete. Former Minister of Taxation Karsten Lauritzen points out that the Attorney General, acting as the ministry’s permanent lawyer, further strengthens their position. Courts are also hesitant to challenge the state, often granting credibility and deference to the authorities’ assessments.
Law professors Frederik Waage and Michael Gøtze emphasize the courts’ reluctance to contradict the state’s authority. They note that judges often rely heavily on the Attorney General’s well-prepared submissions, especially given the judges’ generalist backgrounds compared to the tax expertise within the National Tax Tribunal. This dependency can make it challenging for citizens to present compelling arguments and overcome the initial disadvantage.
Michael Gøtze suggests that the combination of a strong state legal representation and the generalist nature of district courts can be detrimental to citizens. While the Judges’ Association disputes claims of dependency on the Attorney General and simplified analyses of case outcomes, others like Karsten Lauritzen advocate for the Ministry of Taxation to handle more litigation internally to remove commercial considerations that might influence legal assessments. Despite these challenges, the number of citizens suing the Ministry of Taxation is increasing, potentially driven by cost compensation schemes and declining trust in tax authorities.
Jens Bødtcher-Hansen, Managing Partner at the Attorney General, defends the high success rate as proof of justified tax claims and refutes accusations of commercial considerations influencing litigation. In 2024, over 450 citizens and companies took legal action against the Ministry of Taxation, marking a 60% increase since 2021. While law professor Frederik Waage attributes this rise to the cost compensation scheme, Michael Gøtze believes it may stem from declining trust in the tax authorities.