Additional tax

You're obliged to provide accurate and complete information. Even if someone other than you has been involved in providing the information, you're still responsible for what has been provided.

You'll be required to pay additional tax if the missing information could lead to tax advantages for you. We objectively assess what information should have been provided, based on what an ordinary taxpayer who complies with the rules would have provided.

How much is the additional tax?

Additional tax is calculated at 20 percent of the tax advantage.

For serious cases, the Tax Administration  may also impose extra additional tax, on top of the ordinary rate.

• Extra additional tax is 20 percent, meaning that the total additional tax will be 40 percent in serious cases.
• For especially serious cases, the Tax Administration may impose 40 percent extra additional tax in addition to the ordinary rate. This means that the total additional tax may be as high as 60 percent.

Extenuating circumstances

If the breach of the duty of disclosure is due to extenuating circumstances, you will not be charged additional tax. The law does not provide a detailed description may constitute extenuating circumstances, but practice shows that this may include illness, accidents, technical misunderstandings, and the like.

Exemptions from additional tax

The Tax Administration Act also stipulates rules regarding exemptions from additional tax. For example, additional tax will not be imposed for correct and complete information that is pre-filled in the tax return, in the event of obvious typing and calculation errors, in the event of voluntary disclosure, or if the taxpayer has died.

Appealing additional tax

You can appeal the additional tax within six weeks.

For us to process the appeal, it must:

• be in writing
• be sent electronically or on paper 
• include an explanation

You can use the form for appealing against decisions from the Tax Administration. You can also send it to us by post.

If the additional tax is upheld, the appeal will be sent to the Directorate of Taxes or the Tax Appeals Board, which are the appeal bodies.

Deferred implementation of the additional tax decision

You're entitled to deferred implementation of the additional tax decision if you appeal or take legal action. Deferred implementation means that the decision will not be put into effect until the appeal has been decided or there is a final court ruling.

If you wish to take legal action to have the decision reviewed by a court, you must request deferred implementation. You do not need to do this if you're going to appeal.

Deductions in additional tax if you've received an enforcement fine

If the Tax Administration has issued an enforcement fine for failure to submit information, the amount paid in the enforcement fine will be deducted from the calculation of the additional tax for the same circumstance.