- The lending of funds to a subsidiary does not qualify as “business or commercial” activity for VAT entrepreneurship.
- The company in question holds shares in an oil exploration company based in Kazakhstan.
- The lending of funds was done under unfavorable conditions, indicating a lack of business or commercial intent.
- The company is not considered an entrepreneur for VAT purposes due to the lending activity.
- The tax authority imposed additional taxes on the company for fees paid to a shareholder, but the court ruled that there was no direct connection between the fees and services provided to the company.
- The court concluded that the tax assessments were unjustified and should be annulled.
Source: taxence.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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