Securities Lending - Change Of Danish Tax Treatment

So far, the lending of securities traded on a regulated market has not been considered a dis-posal for Danish tax purposes, provided that a number of conditions were met, including a maximum lending period of six months.

New decision by the Danish National Tax Board

In a case recently decided by the Danish National Tax Board, a taxpayer requested a binding tax ruling on the Danish tax treatment of a securities lending transaction entered into for short-selling purposes.

No maximum lending period was fixed under the terms of the transaction. Instead, the terms provided that the lender was entitled to terminate the loan by three days' notice and that the borrower was entitled to terminate the loan by one day's notice.