In Denmark where the public sector is financed by taxes and duties, the tax system and its administration play a crucial role. Without the combination of solid tax rules on the one hand and the collection and steady flow of revenues on the other, it is not possible to provide the revenues that form the foundation of the public service of the Danish State, regions and municipalities.
This means that the tax system and the way it is administered are essential for the successful performance of all other public sector core tasks. In other words, the Ministry of Taxation helps to provide the foundation for financing of the public sector in Denmark.
Each year, the Danish Customs and Tax Administration (Skatteforvaltningen) collects close to DKK 1,000 billion for financing of the public sector. This work requires significant expertise, as the tax legislation and practices are comprehensive and regulate a vast number of highly complex areas. It requires a robust IT system, legal and financial expertise and the capacity to manage complex processes and data.
Apart from the Department, the Ministry of Taxation consists of nine specialised agencies each responsible for their own core tasks. The agencies have offices spread over 26 locations in Denmark.