X states that its business activities consist of fraud investigation and that it has continued to exist as an entity for the settlement of claims with various institutions. For the periods from 2013 to 2018, X submits turnover tax returns with only deduction of input tax. The inspector states that X does not carry out any economic activities and imposes additional assessments to the amount of the deduction. X appeals.
The District Court of Noord-Holland rules that X is not an entrepreneur for turnover tax purposes. Since 2009, no turnover is visible at the tax authorities. Nor is it plausible that there is a right to deduct input tax due to the settlement of economic activities performed in the past. Receiving periodic penalty payments or compensation for exceeding the reasonable term in the proceedings is insufficient. The appeal is well-founded in connection with the reduction of the fines due to financial circumstances and the exceeding of the reasonable term.
Source Taxlive.nl
