The report examines the efforts of the Danish Central Customs and Tax Administration (ToldSkat)to combat shadow economy in the period 2000-2004. The purpose of the report has been to examine and assess whether the efforts of the Danish Central Customs and Tax Administration (ToldSkat) to combat shadow economy in the period has been based on good practice.
The extent of the shadow economy in Denmark is significant and is increasing in recent years. The annual revenue loss for the Danish State is assessed to amount to about DKK 13-21 billions.
The National Audit Office of Denmark has also included lessons learned from other countries’ tax authorities and OECD’s recommendations concerning the effort to combat shadow economy in order to assess whether the efforts of the Danish Central Customs and Tax Administration (ToldSkat) has been in accordance herewith.
In order to meet the objective of the examination the National Audit Office of Denmark has examined the following subjects: the basis of the Danish Central Customs and Tax Administration (ToldSkat) for assessing the effort, strategies, control plans and risk assessments, effort and follow-up.