COURT CASE AGAINST MUNICIPALITY OF KUJALLEQ

Municipality of Kujalleq receives million-dollar fine

Published

Municipality of Kujalleq must pay a fine of four million kroner to the Danish Tax Agency. The Treasury must pay the costs of the case.

This is what KNR writes about the verdict, which was handed down on Tuesday morning.

The prosecution originally wanted the municipality to pay a fine of 6.1 million kroner to the Danish Tax Agency due to late payment of A-tax, but the municipality will therefore get away with a fine of 4 million kroner.

The case concerns the fact that during 2023 and 2024, Municipality of Kujalleq did not pay A-tax on time for 10 months and completely failed to pay for three months.

Poor finances in the municipality

During the court hearing on April 21, five witnesses painted a picture of a municipality with ailing finances and poor management of things. A new financial system created chaos, and the municipality was completely convinced that they had paid their taxes on time, until an external consultant got to the bottom of the matter.

- It was quite clear to me that the municipality was not aware of it, and that it was their opinion that the money had been settled, said the external consultant in court.

However, the witnesses also pointed out that the Danish Tax Agency seemed not to have discovered that the Municipality of Kujalleq had not paid A-tax on time until the municipality itself approached the matter.

Not everyone gets fines

An employee at the Danish Tax Agency explained in court that there is no system at the Danish Tax Agency that tells them that someone has not paid on time. Therefore, not everyone who has not paid on time gets a fine.

CFO/Deputy Municipal Director of the Municipality of Kujalleq Arne Andersen explained in court that as of February 2025, the municipality will not owe any more money to the Danish Tax Agency.