Danish tax agency finds signs of social dumping at companies across the country

A nationwide inspection has found signs of social dumping at 28 companies in Greater Copenhagen, Southern Jutland and Funen.

The Danish Tax Agency carried out the operation on Aug. 20 with the Danish Working Environment Authority and police. Inspectors visited 51 companies in total. They found indications of social dumping at 15 companies in Greater Copenhagen, nine in Southern Jutland and four on Funen.

The agency said most of the cases involved companies connected to the construction industry. Social dumping includes situations in which foreign workers perform jobs in Denmark for lower wages and under poorer conditions than Danish colleagues. It can also involve foreign companies working in Denmark without following Danish rules, including tax obligations.

“This control effort helps support fair competition with companies that follow the rules,” said Preben Buchholtz, deputy director at the Danish Tax Agency. The companies will face additional checks to establish how much tax should have been paid in Denmark.

The Tax Agency, the Working Environment Authority and police have worked together against social dumping since 2012. The agency said its inspections since 2020 have led to tax assessments totaling more than 2 billion kroner.

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This control effort helps support fair competition with companies that follow the rules.