- X, a sales tax fiscal entity, bought a car in 2017 and sold it to its sole shareholder for part of the purchase price.
- X filed a dividend tax return for a disguised dividend and reclaimed sales tax for the third quarter of 2017, including input tax for the car purchase.
- However, the inspector imposed an additional assessment for the year 2017 and disputed whether X was entitled to deduct input tax.
- The North Holland District Court ruled that X was not the purchaser of the car and therefore not entitled to deduct VAT.
- The court also found that the inspector failed to demonstrate conditional intent for the offense fine but showed gross negligence, resulting in a reduced misdemeanor fine of 25%.
- The appeal was well-founded and the misdemeanor fine was further reduced by 15% due to exceeding the reasonable period for handling the case.
Source Taxlive
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