Opposition Leader Under Pressure Over Tax Dispute

29-07-2010 16:52 Social Democrat leader Helle Thorning-Schmidt is at the center of a row over alleged misleading tax information related to the residency of her husband, Stephen Kinnock. The controversy is particularly embarrassing for Thorning-Schmidt as her party opposes some of the tax breaks implemented by the current center-right government

The dispute revolves around the tax status of her husband, the son of the former British Labour leader Neil Kinnock. While spending much of his time in Denmark, Kinnock - a foreign national - works for the World Economic Forum in Switzerland.

In October 2009, when applying for permission for her husband to be named as co-owner of her Copenhagen property Thorning-Schmidt told the Ministry of Justice that he was resident is in Denmark for four days per week, or 208 days per year. However, this differs from the information she provided to the tax authorities, who were informed that her husband spends much less time in Denmark

"It was a sloppy mistake, which I obviously regret," Thorning-Schmidt wrote in an email to the Ritzau news agency, adding that she will now send a new mail to the Justice Ministry correcting the earlier information. Tax authorities are now investigating whether it was a simple error or a case of deliberate tax avoidance.

 “If they reach the latter conclusion, she has obviously a huge problem” said Peter Goll, a political analyst and former adviser to the leftist Socialist People’s Party.