So long ‘min SKAT’: Denmark restructuring its tax authority

From next summer, SKAT will be divided into seven separate authorities

It’s been tough for Denmark’s tax authority in recent years. From missing billions to incorrect property evaluations, SKAT has been embroiled in scandal after scandal, and now it’s time to pay the piper.

The government has revealed that SKAT will be shut down and divided into seven separate authorities by 1 July 2018.

“It’s not a criticism of the individual worker, but rather of a system that has failed to deliver in the critical areas,” the tax minister, Karsten Lauritzen, told Berlingske newspaper.

“So I’ve reached the conclusion that instead of using money on patching up a SKAT that doesn’t deliver, or if we are being completely honest has never really functioned, we should just completely stop SKAT from existing.

READ MORE: US pension funds involved in billion kroner SKAT fraud

Seven gates of hell
The plan involving a new SKAT structure was already discussed last August as part of a rescue plan that included the tax authority getting more employees.

In the future, the seven authorities will be spread out across the country and each authority will have a head that refers to the tax minister and the Tax Ministry’s head of department.