On 28 September 2026, Danish Tax and Growth Minister Jakob Engel-Schmidt emphasized legal certainty as a top political priority, explicitly referencing FSR Danish Auditors’ tax policy proposal “Time for Trust” (Tid til tillid) as a relevant contribution to the ongoing governmental work. The Minister’s acknowledgment signals a potential shift towards incorporating professional input from the auditing profession into the legislative process, aiming to embed legal certainty durably into tax rules, administrative practice, and organizational culture. This development comes amid rising regulatory complexity and concerns over delayed case processing that have strained the Danish tax system’s predictability. The proposal, unveiled earlier by FSR Danske Revisorer, outlines ten concrete initiatives designed to simplify compliance, enhance taxpayer rights, and restore trust in the tax administration. These include measures to improve advance ruling transparency, limit retroactive legislative changes, and establish a dedicated taxpayer ombudsman function. The Minister’s public endorsement suggests that several of these initiatives may be fast-tracked into legislative drafting, marking a significant moment for Danish tax governance.
Key Takeaways
- Ministerial Endorsement of Professional Input: The Tax Minister’s public recognition of FSR’s “Time for Trust” proposal elevates the auditing profession’s role in shaping tax policy, suggesting that future legislative amendments may reflect the proposal’s ten concrete initiatives aimed at simplifying compliance and enhancing taxpayer rights. This endorsement could accelerate the adoption of measures such as binding advance rulings within fixed timelines and clearer guidelines for discretionary decisions by the Danish Tax Agency (Skattestyrelsen).
- Focus on Sustainable Legal Certainty: FSR stresses that beyond isolated initiatives, the critical task is to anchor legal certainty structurally—through clear rules, consistent administrative practice, and a culture of trust—addressing long-standing issues such as retroactive law changes and opaque advance ruling processes. The proposal advocates for a “legal certainty filter” on all new tax legislation, requiring impact assessments on predictability and compliance costs before parliamentary adoption.
- Implications for Cross-Border and Domestic Compliance: For multinational enterprises and domestic taxpayers alike, a more predictable tax environment could reduce dispute risks, lower compliance costs, and improve the quality of voluntary disclosures, aligning with OECD BEPS transparency standards and EU tax directives. The proposed enhancements to the advance ruling system would particularly benefit cross-border transactions, providing earlier certainty on transfer pricing and permanent establishment issues.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement