Tax cases · 7 August 2026
Full victory in a tax case. DKK 977,000 reassessment reduced to DKK 0
The matter was conducted by attorney Hussain Ali Alhaidary. Hussain Ali Alhaidary
We obtained full relief in a tax case on private loans from family members. The Tax Agency's DKK 977,000 reassessment was reduced to DKK 0.
We assisted a client in an unpublished appeal case where the Danish Tax Agency had increased the client's taxable income by DKK 977,000 in total.
The case concerned the financing of a property purchase. The Tax Agency did not find it sufficiently documented that the amounts the client had received originated from private loans. The amounts were therefore treated as taxable income.
We disagreed with that assessment and brought the case before the Tax Appeals Board.
Private loans from family members
During the appeal we argued that the transactions were genuine loans with an actual repayment obligation.
The loans could be supported, among other things, by promissory notes, explanations, documentation of the money flows and other objective circumstances regarding the loans' establishment and use.
The central issue in the case was therefore not only whether written loan documents existed, but whether the client's explanation of the loans could, overall, be supported by the factual circumstances.
The Tax Appeals Board found for the client
The Tax Appeals Board found that the client's explanation of the loans from family members was supported by objective facts.
The amounts were therefore not to be taxed as income.
The Tax Agency's reassessment of DKK 977,000 was reduced to DKK 0.
A promissory note is not always enough
The decision illustrates an important point in tax cases on private loans.
As a starting point, it is not sufficient merely to produce a promissory note if the Tax Agency questions whether there is genuinely a loan.
Weight will often also be placed on, among other things, the money flows, the lender's ability to provide the loan, the parties' explanations, the timing of the loan's establishment and whether an actual obligation to repay the amount exists.
It is therefore the overall documentation that can become decisive for the outcome of the case.
Has the Tax Agency taxed a private loan?
We assist in tax cases where the Tax Agency does not recognise private loans or treats transfers between family members and other private parties as taxable income.
If you have received a proposed or final decision from the Tax Agency on the taxation of a private loan, you are welcome to contact us for a non-binding assessment of the case.
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