Dutch Court Rules on Tax Abuse in Property Sales via Foundation

• Rechtbank Zeeland-West-Brabant finds X BVBA guilty of tax abuse in the sale of plots through Stichting Y to gain tax benefits
• X BVBA indirectly sells two plots to Stichting Y through shareholders A and B in October 2011
• Stichting Y, a non-taxable entity, remains indebted to X BVBA for the purchase price
• From October 2012 to September 2016, Stichting Y sells these plots, possibly with buildings, to individuals, incurring only transfer tax
• The tax inspector imposes additional VAT assessments for 2013 to 2016, ignoring transactions to Stichting Y and shareholders
• X BVBA appeals but the court confirms tax abuse as X BVBA transfers plots just before they become building sites, retains financial risk, and acts as a seller in the market
• The court rules that the transactions aim solely for tax benefits, dismissing the appeal based on violation of the defense principle

Source: taxlive.nl

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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