- The Court of Appeal in ‘s-Hertogenbosch ruled that X bv, a company involved in real estate investments, purchases, sales, advice, rental and mediation, was not grossly negligent in not paying VAT charged on a sale. It was unclear who submitted the declaration, and the inspector should have investigated whether it was done by the tax consultancy firm engaged by X bv.
- The lack of clarity was interpreted in favor of X bv.
- The inspector’s statement that caution was not necessary during a conversation about the investigation into the debt was considered unbelievable and indefensible by the court.
- The court annulled the fine as the inspector violated X’s right to remain silent.
- However, X bv is liable for the VAT stated on the invoice as per art. 37 OB Act 1968, even if no taxable performance was performed.
Source Taxlive
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