Kujalleq Municipality Fined Four Million Kroner for Tax Delays
In a significant ruling from the Court of Greenland, the municipality of Kujalleq has been ordered to pay a fine of four million kroner to the Greenland Tax Agency. This decision, reported by KNR, arises from the municipality’s failure to remit A-tax and labor market tax payments in a timely manner between February 2023 and May 2024, amounting to a staggering total of 400 million kroner.
During the court proceedings, prosecutors sought to impose an even heftier penalty, claiming that the municipality—home to just over 6,000 residents—should be fined more than six million kroner. They argued that the delays were either intentional or a result of gross negligence. However, the defense contended otherwise. According to KNR, the defense pointed out that the Tax Agency itself had not reached out to Kujalleq to pursue the outstanding payments.
In an ironic twist, it was the municipality that proactively notified the Tax Agency of its tax debts, as reported by Greenlandic media. Nonetheless, the prosecutor maintained that the situation amounted to gross negligence, explaining that although the municipality’s management had reported the accurate tax amounts, they failed to make the necessary payments.
“They have simply played with the spinach for several years, and now they will not stand by it,” said the prosecutor during the hearings, as noted by KNR.
Reports from Sermitsiaq, which was present at the court session on April 21, painted a disconcerting picture of Kujalleq’s financial standing, indicating “ailing finances and poor control of affairs.” Attempts by KNR to obtain comments from the municipality’s mayor, Malene Vahl Rasmussen, have been unsuccessful, as she has refrained from addressing the matter publicly.
This incident is not the first time Kujalleq has faced scrutiny; the municipality has previously drawn criticism for surpassing budget limits and for improperly placing children without the necessary documentation.
As it stands, the costs associated with this case will ultimately be borne by the Greenlandic treasury.
