Report on transparency of tax expenditures (tax deductions, tax reliefs, etc.)


Report no. 1/2007

The report deals with the transparency of Danish tax expenditures. Tax expenditures may be defined as taxes that are not being levied as they represent exceptions from the general tax rules. Employer paid health related treatments and tax-exempted home PCs and internet connections are examples of tax expenditures. In 2006, tax expenditures were estimated at approximately DKK 35.1 billion.

Rigsrevisionen has examined the legal basis of tax expenditures, whether tax expenditures are statutory and whether the objectives and expected financial implications related to the expenditures appear from the explanatory notes to the respective laws. Rigsrevisionen also examined whether tax expenditures are part of the budget process and appear from the Budget in line with other expenditure. Finally, Rigsrevisionen looked into the reporting of the scope and costs related to tax schemes and whether the impact of tax expenditures is being assessed.

The examination was conducted on the basis of international recommendations and common practice in several countries.

Read the report (PDF)