This Opinion Statement discusses the implications of the decision of the Court of Justice of the EU in the case of C-132/16 Iberdrola, and seeks to analyse why the right to deduct input tax should not be unduly restricted. CFE considers that input tax should be deductible when, for non-philanthropic reasons, expenses are incurred in relation to land that is not owned by a developer in order to obtain permission to develop other land. The indirect tax committee also can see force in arguments that no output tax liabilities should, as a general rule, arise in such circumstances. On some points, the Opinion Statement reflects the views of the entire Committee and on other points it reflects the views of the overwhelming majority of the Committee.
Source: taxadviserseurope.org
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