Under the Danish Chain Liability Act (Kædeansvarsloven), companies can be held jointly responsible for their subcontractors' unpaid taxes, VAT and social contributions. This applies primarily to public procurement contracts.
How Chain Liability Works
A municipality contracts Company A for a building project
Company A subcontracts to Company B
Company B further subcontracts to Company C
Company C fails to pay employee taxes and VAT
Result: Both Company A and B can be held liable for Company C's unpaid taxes
The only defense is documented proof that you performed adequate due diligence on your subcontractors before engaging them.