Jesper Grandt Jørgensen, a 78-year-old Danish business owner, faces a DKK 127 million tax bill due to repeated taxation on shareholder loans. Despite his efforts to persuade the Danish Parliament to retroactively change the law, similar to a previous case involving inventory taxation of shares, his request is unlikely to succeed.

Jørgensen’s case involves being taxed approximately 50 times on the same money due to regulations on shareholder loans. He, along with his lawyer, sought support from Parliament, drawing parallels to the “tax from hell” case where politicians addressed unreasonable tax rules retroactively.

While some parties initially expressed sympathy, the tax committee chairman, Anders Kronborg, stated that no amendments received support and the bill was approved without changes. Kronborg also noted the need to secure funding to assist business owners impacted by these tax rules.

The state treasury has collected an estimated DKK 500 million from these tax rules, while assisting affected business owners would require DKK 1 billion. Tax Minister Rasmus Stoklund also highlighted administrative hurdles and high costs associated with helping those impacted.

Venstre’s tax spokesperson, Preben Bang Henriksen, acknowledged the situation but suggested potential corrections at a later time. Ammar Ali from Moderaterne advocated for retroactive application, referencing the previous “tax from hell” case.

Jørgensen’s lawyer criticized the taxation of “fictitious income” and the delay in addressing the issue. He believes that with sufficient political will, a solution could be found.

If a last-minute rescue doesn’t occur, Jørgensen intends to pursue legal action. The current rules tax business owners multiple times on borrowed and repaid money from their companies. A proposed easing of the rules, set to take effect on January 1, 2026, would tax the highest withdrawn amount only once.

The shareholder loan rules, introduced in 2013, aimed to prevent the use of loans as a substitute for taxable income. Although it was illegal to borrow from one’s company, it only resulted in a fine until the tax was introduced.

The proposed changes also align with amendments to company law, making shareholder loans legal from January 1, 2025, although they remain taxable.