On 20 December 2011, SKAT prepared a guideline to employers on the handling of computers, Internet connections and phones made available to the employees. The guideline is available on SKAT’s website.
It appears from this guideline that the requirements concerning the employer's control of cell phones for work purposes have been eased compared to the previous rules. Now, the employer is only required to make a thorough control of the employee's use in those cases where the employee significantly deviates from the "normal pattern" without any work-related reason, and if the employer establishes that the employee has used the work phone for payment of private expenses, e.g. fund-raising, purchase of clothes, etc. The guideline also contains a solemn declaration for the employee's confirmation that the phone will only be used for work purposes.
In our Newsletter of 5 December 2011, we stated that it was not clear whether the transitional rules concerning gross pay arrangements entered into before 1 January 2012 - taxation of DKK 3,000 as a maximum - are inclusive or exclusive of the tax on free phones. This question has now been clarified as the Bill specifies that taxation is to take place according to the rules on free phone.
The content of this Newsletter is not, and should not replace, legal advice.