Answer to the tax office: Prove private money movement

What does this legal document offer you?

Have you received mail from the tax office asking you to explain a private money transfer – for example, a transfer from family or friends? With this sample letter, you can respond to the request in a legally compliant manner and refer to the existing private loan agreement.

This letter fits perfectly if you are using the PepperPapers loan agreement if you have already concluded a private agreement for a loan – for example between parents and child, partners, friends or within the family.

Ideal if the tax office requires receipts for:

• Money transfers between private individuals

• Support for relatives

• Repayments or interest payments in the private sphere

The sample letter refers to all relevant points:

• Loan amount

• Repayment modalities

• Reference to the concluded contract

• Not a taxable gift

Important: Without this proof, the tax office may classify the money movement differently – e.g. as income or a gift. This document will keep you on the safe side.