The inspector rejected the refund claim because, in his view, the purchase of the nickel was not related to X’s business activities. The Zeeland-West-Brabant District Court ruled that the management of the working capital was necessary for business operations and without that management the economic activity could not be carried on or continued. Thus, there was a direct and immediate link with X’s economic activity as a whole. X had implemented the working capital management by purchasing a batch of nickel. The fact that the purchase was not necessary as such did not mean that there was no direct and immediate connection. It concerned a business decision about how X implemented working capital management.
Source: FUTD
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