There is a possibility for both ordinary and extraordinary resumption as a result of the change in the Danish tax authorities' practice for companies that may have been denied the right to deduct payments to foreign group companies in violation of EU law or a double taxation treaty. Resumption can be claimed pursuant to the resumption rules in Sections 26 and 27 of the Danish Tax Administration Act (Da. “Skatteforvaltningsloven”).
Ordinary resumption will be granted if the request is made no later than 1 May in the 4th year (or 1 May in the 6th year when concerning controlled transactions) after the end of the income year in question, provided that information of a factual or legal nature is presented to justify the change. Therefore, it is possible to reopen tax assessments for the income year 2020 (and 2018 when concerning controlled transactions), provided that request for resumption is filed before 1 May 2024.
If the deadline for ordinary resumption has expired, an extraordinary resumption may be granted upon request. The right to extraordinary resumption is limited by the absolute prescription period of ten years, cf. section 34 a (4) of the Danish Tax Administration Act. Furthermore, a request for extraordinary resumption must be made no later than 6 months after 28 November 2023. This means a request for extraordinary reopening of previous tax years backdating ten years must be made no later than 28 May 2024.