The Skattestyrelsen, Denmark’s tax authority, has been cracking down on 136,000 individuals and businesses who were late in paying their green vehicle tax earlier this year. These taxpayers have been hit with demands to settle their debts, averaging around 31 kroner per person, according to Skattestyrelsen. Shockingly, a third of them have yet to clear their dues with the Motorstyrelsen, putting them at risk of further debt collection by the Gældsstyrelsen for mere pocket change.
Current figures show that approximately 46,000 taxpayers and businesses still have outstanding payments. In the event that interest charges are left unpaid after the payment deadline, Skattestyrelsen will escalate the claim to Gældsstyrelsen without further notice, as per Skattestyrelsen’s statement.
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#### Expert Opinion: Potential Issues Ahead
Despite the efforts to collect these small amounts, it may backfire on the authorities, as highlighted by BDO’s chief consultant and tax expert, Henning Boye Hansen. He argues that the costs associated with collecting these minor amounts outweigh the benefits and erode public trust.
“In my view, it diminishes citizens’ respect for public authorities. People lose faith in the government when officials engage in actions that are perceived as nonsensical,” he remarks.
According to Inge Maria Frydendahl Kruse, the deputy director of Gældsstyrelsen, the debt collection system is highly efficient in recovering owed funds to the government.
Forbrugerrådet Tænk, a consumer rights organization, shares similar concerns. They point out that even a small debt to Gældsstyrelsen, unbeknownst to the debtor, can lead to significant obstacles in obtaining new insurance, making installment purchases, or securing loans for a dream home.
Chief economist Morten Bruun Pedersen advocates for more leniency from the tax authorities when dealing with minor debts. He notes, “Many individuals may not even be aware of these debts, as they are often insignificant amounts.”
Here, you can learn more about how to check for any outstanding debts in the system on your own.