Schematically presented, investment fund A, according to the sub-participation agreement that the taxpayer in the main proceedings intends to conclude, pays bank B an amount in advance when that agreement is concluded. Bank B (hereinafter “the originator”), which has lent money to C (hereinafter “the principal debtor”), in return for that payment agrees to pay investment fund A (hereinafter “the sub-participant”) the income that the originator receives from the original loan agreement with the principal debtor. In this case, the cash flow and risk are withdrawn from the balance sheet of the originator and transferred to the investment fund to which the present case relates, but the originator retains legal title to the relevant assets.
Source BTW jurisprudentie
Join the Linkedin Group on ECJ VAT Cases, click HERE
