The Danish tax authorities will now begin investigating financial transactions made through the MobilePay app to avoid recurring errors and misunderstandings that could lead to additional tax payments or legal trouble, according to pensionist.dk.
Auditing financial transfers via MobilePay
The new investigation, authorized by the Tax Board, targets individuals receiving money through digital payment services such as MobilePay, aiming to ensure the correct reporting and taxation of these funds. This comes as part of the IRS's efforts to combat undeclared work, illegal rentals, and the sale of goods without proper documentation.
In 2022, a similar investigation resulted in the recovery of more than 8 million kroner in lost taxes and VAT, as many people corrected their data themselves after receiving warnings.
How to avoid tax problems?
- Accurate documentation of financial transactions:
To avoid any issues with the tax authorities, you should keep clear documentation for every transaction. For example, when selling your own clothes, toys, or furniture, there is no need to pay taxes on these sales, but it is advisable for the buyer to specify the nature of the transaction in the designated text field in the MobilePay app. - Keep receipts and photos:
If you sell goods, it is a good idea to keep receipts and document each sale by taking pictures of the merchandise, which may help you in case of any inquiries from the tax authorities. - Documenting financial loans:
If you transfer or receive money as part of a loan between you and family members or friends, it is essential to document this clearly. Each payment or transfer should be clearly stated as part of the loan repayment. It is also advisable to prepare a written document outlining the loan terms to avoid any misunderstandings with the authorities in the future.
Following these procedures may help avoid problems with the tax authorities and ensure that all financial transactions are properly and transparently documented.
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