Ferraris Seized by Danish Police in Crackdown on Tax Evasion
A luxury Ferrari GTC4 Lusso T automobile, produced by Ferrari NV, is unveiled on the first press day of the Paris Motor Show at Porte de Versailles exhibition center in Paris, France. (Photographer: Jasper Juinen/Bloomberg)

Ferraris Seized by Danish Police in Crackdown on Tax Evasion

(Bloomberg) -- Danish police took the irregular step of seizing a number of luxury cars as authorities intensify their efforts to crack down on tax evasion.

The Danish Prosecution Service said the action was part of an investigation into wide-spread efforts to dodge sales taxes, according to a statement on Friday. Police took the “unusual step” of seizing three Ferraris associated with a company in the Copenhagen area last week, it said.

The development comes as Danish authorities grapple with an historic tax scandal, covering everything from $2 billion in dividend fraud, to systemic tax avoidance by local businesses and households. The affair has shocked a nation that relies on a stable revenue stream to pay for its fabled welfare system. On Thursday, the tax ministry fined lawyers hired by the state after they failed to show impartiality when handling the dividend tax scandal.

“It’s important for society that we secure as many assets for state coffers as possible, when the possibility arises,” Michael Lichtenstein, deputy police inspector, said in the statement. “That’s also the case even if there hasn’t yet been a conviction against any individuals or companies. It’s our experience that suspects often try to conceal their valuables when they know the police has started an investigation against them.”

The Ferraris in question are estimated to be worth over 2 million kroner ($300,000), according to the statement. The Prosecution Service said it also seized assets in the form of real estate equity as well as bank savings.

©2019 Bloomberg L.P.

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