Court Divided on VAT Abuse: Car Sales to Directors at Below-Market Prices and Tax Implications

Companies sold cars to director-shareholders at 7.6%-10.5% of appraised values, treating the difference as disguised dividends for tax purposes.
The Court of Appeal ruled the sales were for consideration, with no abuse of rights, as the low price alone was insufficient for abuse.
The Advocate General disagreed, finding the sales were not for consideration and constituted abuse of rights due to tax-driven, abnormally low pricing.
The Advocate General recommended taxing the transactions based on appraised values, not sale prices, to align with VAT Directive objectives.

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.