Tax & duties

Correct tax management is decisive in all forms of transactions. Horten’s tax team has many years’ experience as an innovative adviser to our clients in all phases of M&A.

We advise both in connection with very large Danish and foreign M&A transactions and in connection with a number of small and medium-sized transactions.

On the seller side, our advice comprises optimisation of the seller’s and the management's tax position in connection with sale and reinvestment, vendor financing, review of sales agreements, bonus and incentive programmes, contact with tax authorities, etc.

On the buyer side, we advise on the structuring of acquisitions and finance, tax due diligence investigations, structuring reports and cash flow statements, carry taxation of capital fund partners, review of purchase agreements, bonus and incentive programmes, contact with tax authorities, etc.

Horten’s tax team advises on tax procedures at all levels. This may be in the initial dialogue with SKAT in a tax audit, appeals against SKAT’s decisions with the National Tax Tribunal and conducting tax cases before the District Courts, the High Courts and the Supreme Court.

Our advice within tax procedures includes cases concerning tax, VAT and duties.

We also assist with obtaining binding rulings and handling the procedure, including the negotiations with SKAT and process management, appearing before the National Tax Board (if relevant) and handling a subsequent appeal case concerning the binding ruling.

Horten advises on all forms of incentive pay and assists with structuring, drafting and implementing incentive programmes. Our team has wide experience within both share-based compensation (shares, warrants and options) and cash compensation (phantom shares, bonus, etc.).

We have practical experience within all types of enterprises - from listed companies and venture portfolio companies to small companies. We focus on providing comprehensive advice where tax does not stand alone, but includes other relevant practice areas, including company law, employment law, financial regulation and securities law.
 

We assist with valuations in connection with grant, exercise and sale of share instruments - also in cooperation with the company's auditor or external valuation experts depending on the specific situation.

Horten's tax team advises on both the tax aspects of transaction insurance (W&I) and insurance products uncovering isolated tax-specific risks.

In recent years, we have advised insurance companies in a number of high-profile cases on e.g. withholding tax obligations.

Horten's real estate and construction team is among the largest and leading real estate teams in Denmark. Our tax team is an integrated part of the real estate and construction team and provides tax advice on the selection of buyer structure, tax optimisation and purchase of Danish real estate and planning of optimisation in connection with subsequent sales.

We have in-depth knowledge about the VAT challenges in connection with purchase, sale and development/construction of real estate and have acted as advisers to major players on the market in the majority of the recent development projects in the Copenhagen region.

Our advice also includes optimisation of Danish registration tax in connection with sale of real estate.

Horten's tax team has in-depth knowledge about the regulatory rules within the financial sector and their interaction with the tax rules in the area. We have assisted a number of financial companies with implementing incentive programmes that are tax efficient and comply with the regulatory rules of the Financial Business Act.

We also assist with the drafting of prospectuses concerning financial products and in connection with Danish tax qualification of Danish and foreign financial products.

Horten’s tax team has many years' experience advising on ownership transfer in connection with generational succession. We advise on all phases of ownership transfer and implement and manage the process from A to Z.

Our advice includes identification of the best tax models for the ownership transfer and the more detailed planning and structuring of the ownership transfer. It is essential to ensure that the selected model is correct, and, as part of the clarification phase, we always prepare a resolution proposal with simulation of potential savings in connection with the ownership transfer to highlight the various tax optimisations at an early stage of the process.

We also advise on the financing of ownership transfers in connection with generational succession, including by gift, debt and operations (dividend) and assist with valuation of companies - if required, in cooperation with the company’s auditor or external valuation experts depending on the specific situation.

We also assist with obtaining tax permissions and approvals related to generational succession.

Our advice within ownership transfer in connection with generational succession is comprehensive and includes aspects of inheritance law and other related practice areas.