The notion of "beneficial owner" has in recent years
been intensely debated in Denmark. A judgement from the High Court
provides some clarification, but important questions remain
unresolved.
"Beneficial owner" in Danish tax law
The term "beneficial owner" does not have an
equivalent in Danish law, and until recently the Danish tax
authorities did not seem to have looked into whether a recipient of
dividends and interest from sources in Denmark was also the
"beneficial owner".
Recently, however, the Danish tax authorities investigated more
than 100 structures (primarily private equity and industry
structures) and initiated more than 20 court cases against
companies claiming more than 5 billion DKK focusing specifically on
conduit companies, meaning intermediary companies which formally
receive payments for their own benefit, but in reality for the
benefit of other companies.
