Court Upholds Penalty for Ceramic Business’s Deliberate Underpayment of VAT

• X intentionally accepted the significant risk of underreporting tax.
• A penalty was correctly imposed for this intentional act.
• X operates a sole proprietorship producing and selling ceramic products.
• After an audit, a tax assessment with a penalty was issued, correcting pre-tax deductions.
• The inspector found some invoices were false or not from VAT-liable businesses, and amounts were deliberately inflated.
• The court ruled that X’s intent led to insufficient tax being reported.
• X’s claim of not falsifying invoices was deemed irrelevant as she submitted incorrect returns.
• The penalty was reduced from 50 percent of the additional VAT to a lower amount due to a delay in proceedings.
• The appeal by X was dismissed.

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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