Tax cases, burden of proof
Bank deposits and the Danish Tax Agency
A deposit into a private account is not in itself an explanation of what the amount covers. Money flows and documentation must be assessed together.
Has the Danish Tax Agency asked about deposits into your account or treated them as taxable income? Then it is important to get an overview of each individual deposit.
We assess the authority's basis and help connect explanations to the documentation that actually exists.
When a deposit is treated as income
The Danish Tax Agency may react to amounts deposited into a private bank account if it considers the money to be payment for work, a gift or other taxable income.
A bank deposit does not in itself explain what the amount covers. The case therefore often turns on the origin of the money, the purpose of the transfer and the documentation that can support the explanation.
What does the Danish Tax Agency look at?
The authority will typically compare bank material with information about work, business activity, loans, gifts and other financial circumstances. The chronology between the deposits and the other information can also matter.
- Bank statements and transfers
- Sender and recipient of the amounts
- An explanation of each individual deposit
- Any agreements, loan documents or receipts
- Whether the amount can be linked to work or a service
- The connection with other income and activity
Evidence and documentation
We examine the facts closely and sort the bank movements so it becomes clear which amounts the case is actually about. A good explanation should be capable of being linked to specific documents and a coherent course of events.
It may be relevant to distinguish between loans, repayments, private transfers, payment for work and other amounts. The legal assessment depends on what the money actually covers.
Labour market contributions and other consequences
If the Danish Tax Agency treats deposits as remuneration for personal work, it may also raise questions about labour market contributions. It does not automatically follow from every income increase that labour market contributions are also payable.
A specific assessment of the basis, the documentation and the deadline for responding is therefore important when you receive a proposed assessment or a decision.
What does a tax lawyer do?
HAY LAW reviews the bank material systematically and assesses whether the Danish Tax Agency's assumptions match the actual circumstances. We help collect and explain the documentation and narrow the scope of the case.
Where the case requires it, we prepare comments or an appeal and assess whether it should proceed to the Danish Tax Appeals Agency, the National Tax Tribunal or the courts.
When the bank also reacts to the deposits
The same deposits that the Danish Tax Agency asks about can prompt questions from the bank about the source of funds, and in some matters lead to termination of the account.
The explanation given to the bank and the documentation in the tax case should therefore be consistent.
A documented bank deposit case
- Labour market contribution assessment of DKK 750,100 cancelled
The matter was conducted by attorney Hussain Ali Alhaidary. Hussain Ali Alhaidary
This page provides general information and is not a substitute for specific legal advice. The outcome of a previous case does not guarantee the outcome of a new case.
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