Denmark: Company Draining

Abstract

A new phrase has been introduced in Denmark in the field of financial crimes called ‘Company Draining’, and the Public Prosecutor of Commercial Crimes is presently investigating 2,000 cases involving considerable amounts of money (milliards of DKK). The money drained from the companies is money owed to the fiscal authorities. The method is as follows. A company closes down its business and pays its creditors. Left in the company is a sum of money owed or partly owed to the fiscal authorities but not payable until a certain date in the future due to the tax legislation.

Citation

Vinding Kruse, S. (1995), "Denmark: Company Draining", Journal of Financial Crime, Vol. 3 No. 1, pp. 107-108. https://doi.org/10.1108/eb025687