The case concerned whether an association should be regarded as having provided an advertising service for consideration in connection with the receipt of a donation. The purpose of the association was to perform theater performances, and the donation received from a foundation was to be used to build a mobile stage and spectator structure. In connection with the donation, it was important for the foundation that the foundation was mentioned for communication and marketing purposes, and all press material had to be coordinated with the foundation before publication. The National Tax Court found that there was no direct connection between, on the one hand, the donation received by the association and, on the other hand, the service provided by the association, which consisted of exposure via the association’s marketing. In this connection, special consideration was given to that the extent of the fund’s exposure, according to the information, could not be assumed to have been dependent on the size of the donation. The National Tax Court hereby noted that, based on the association’s flyers, posters and theater programs, it had to be assumed that all associations etc. that had made donations obtained the same exposure, regardless of the size of the amount donated. On this basis, the National Tax Court amended SKAT’s decision so that the association should not be considered to have provided an advertising service for consideration in connection with the receipt of the donation.
Source: skat.dk
