Tesla Accused of Tax Dodge in Denmark

November 16, 2015 Taxation in Denmark

COPENHAGEN – Tesla has reportedly registered thousands of cars in Denmark in a concentrated effort to dodge a significant tax hike on the horizon for electric cars.

In a televised broadcast over the weekend the Minister of Tax of Denmark Karsten Lauritzen said that the international electric-car maker Tesla may be trying to intentionally circumvent the effects of a recent cut to the tax breaks offered for the sale of electric cars.

Currently electric cars sold in Denmark are not subject to the same 180 percent levy as other new passenger cars, effectively providing a strong monetary incentive for consumers to buy electric vehicles.

However, the government now intends to extend the levy to all cars, placing electric cars on the same footing as their traditional petrol-powered counterparts.

The tax will result in significant price hikes for the purchase of a new electric car, with the Tesla Model S expected to jump from DKK 650 thousand to DKK 1.8 million.

The Tax Minister claimed that in order to circumvent the approaching tax rise, the electric car manufacturer Tesla has preregistered approximately 2 500 of its own cars, with the intention of selling them later without the burden of the 180 percent levy.

It has been suggested that this is a clear intention to avoid taxes, however, Tesla has responded by saying that it is expected that they will sell all 2 500 cars in the near future, and that the move is a business decision unconnected with the approaching tax hike.

Photo By: Steve Jurvetson