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Conflict No. 11. Artificial splitting of language teaching activity in two companies for the deduction of input VAT

For the purposes of the provisions of article 206.bis of Law 58/2003, of December 17, General Taxation and in accordance with the provisions of article 194.6 of the General Regulation of actions and procedures for tax management and inspection and development of the common rules of tax application procedures, approved by Royal Decree 1065/2007, of July 27, a copy of the report of the Advisory Commission on conflict in the application of the rule regarding the taxpayer “CXZ”.

The Report states that there is a conflict in the application of the tax law in the event of the simultaneous creation of two companies by the same partners, in order for one of them to lease the premises where the activity is carried out and assume the necessary works for its conditioning together with other costs and transfers them to the other company, also providing other services, so that the latter can carry out the language teaching activity.



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