Denmark Tax Agency Clarifies Business Expense Deductions for Cash Purchases of Foreign Currency

The Danish Customs and Tax Administration Sept. 17 posted City Court Decision No. SKM2025.526.BR, clarifying business expense deductions for cash purchases of foreign currency. The taxpayer, a foreign currency exchange business, was denied deductions for cash purchases of foreign currency from private individuals. On appeal, the City Court found that: 1) given large number of casual daily customers, there was an increased burden of showing the expenses were actually incurred; 2) the taxpayer failed to meet this burden by not providing external documentation, such as personal identification information for its sellers, regarding its daily currency purchases equal to 1,000 euros ...