Tax Deductible Expenses and Loan Relationships in Sole Proprietorship: Legal Case Analysis.

• Case BS-13513/2022: Involves invoices from the plaintiff’s wholly owned limited company for consultancy services to the plaintiff’s sole proprietorship
• Court found that the consultancy expenses were not deductible as business expenses for the sole proprietorship
• Court also found that the invoiced VAT was not deductible under the tax laws
• Case BS-13514/2022: Involves whether the plaintiff’s personal income should be increased due to four payments made to the plaintiff’s sole proprietorship
• Court found that the plaintiff did not prove that the payments were from taxed funds or exempt from taxation
• Court also ruled on whether the plaintiff should be taxed on a loan taken out between the sole proprietorship and the plaintiff’s limited company
• Plaintiff’s argument based on European Convention on Human Rights was rejected by the court
• Court found that the loan was not part of normal business operations and was subject to taxation under the tax laws.

Source: info.skat.dk

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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