Two decisions by the Danish National Tax Tribunal have caused a
change of Danish Merger Tax Act.
On 22 September 2010 the National Tax Board concluded that a
vertical merger between a Danish holding company and a parent
company in another EU member state with the latter as the surviving
company will be considered a distribution of liquidation proceeds.
This implies that the distribution will be taxable in Denmark
unless such taxation is waived or reduced under the provisions of
Directive 90/435/EEC or a double-taxation treaty.
The decision was later changed by the Danish National Tax
Tribunal, which found that there was no basis for finding that the
proceeds should qualify as a distribution of liquidation
proceeds.
