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New Danish PM vows to combat tax fraud

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“I pay my tax in the belief that you pay yours. I pay for your doctor’s visit, in the belief that you pay for mine. In Denmark we don’t have gold mines, but we have something more important. We have trust in one another,” said new Danish Prime Minister, Mette Frederiksen.

Denmark's new left-leaning government has proposed loosening fiscal policy by boosting spending on welfare and education and beefing up its tax agency.

The new administration of Social Democratic Prime Minister Mette Frederiksen will channel an extra 5.4 billion Danish crowns ($789 million) into welfare next year, including hiring 1,000 new nurses, supporting poor families, and boosting education funding, it said.

Danish tax authorities, which have come into focus after some 12.7 billion crowns were lost in a dividend-stripping scandal, will get an extra 1.5 billion crowns next year to combat fraud - this should come as a warning to those operating in Denmark in a non-compliant fashion.

As ever, contractors, recruitment agencies and corporate clients who are operating compliantly in Denmark should have nothing to fear.