Denmark Takes Steps to Verify Beneficial Ownership Information, Boost Tax Compliance
Denmark has taken significant steps to ensure transparency in corporate ownership structures by introducing measures to verify beneficial ownership information in its corporate registry. The Danish Business Authority, which operates the Central Corporate Registry, is leveraging advanced technology to automate checks for inconsistencies and detect potential fraudulent activity.
Automated Checks for Inconsistencies
The system checks for deceased or missing individuals and detects if a person under 18 is trying to be registered as a director or beneficial owner. According to Jesper Bertelsen from the Danish Business Authority, this automated check significantly reduces the risk of incorrect information being submitted.
Verification Process for Foreign Beneficial Owners
When registering foreign beneficial owners, the Danish Business Authority requires additional information, including:
- Full name
- Address
- Citizenship
- Passport number or identity card number
- A picture of a valid passport or identity card
The authority also verifies the address through an international database to ensure its existence.
Manual Reviews and Additional Documentation
In addition to automated checks, the Danish Business Authority conducts manual reviews to verify the accuracy of information submitted by companies. This includes requesting additional documentation from entities that cannot provide satisfactory proof of beneficial ownership. As a result, 17 entities have already been dissolved due to their inability to provide necessary documentation.
Commitment to Beneficial Owner Register Development
The Danish Business Authority is committed to staying at the forefront of beneficial owner register development and is closely monitoring research and advancements in the sector. The authority’s modern IT infrastructure enables it to conduct cross-checks and verify beneficial ownership information efficiently, ensuring that only accurate data is made publicly available.
Efforts to Combat Tax Evasion and Promote Transparency
These measures are part of Denmark’s efforts to combat tax evasion and promote transparency in corporate ownership structures. By verifying beneficial ownership information, the country aims to prevent illegal activities such as money laundering and terrorist financing, while also promoting a level playing field for businesses operating within its borders.
In summary, Denmark is taking significant steps to ensure transparency and combat tax evasion by introducing measures to verify beneficial ownership information. The automated checks, manual reviews, and additional documentation requirements are designed to reduce the risk of incorrect information being submitted and promote accurate data publicly available.