- Abuse of Rights Confirmed: The Amsterdam Court of Appeal upheld the District Court’s finding that X BV’s resale of a car to its sole shareholder at an artificially low price constituted an abuse of rights, referencing the Weald Leasing judgment.
- VAT Assessment Adjustment: The court determined that the unusually low compensation for the car sale indicated a purely artificial arrangement aimed at minimizing VAT liability, leading to an upward correction of the taxable amount by €60,000.
- Dividend Tax Implications: X BV’s attempt to classify the sale as a dividend payment was scrutinized, with the court agreeing that the transaction primarily served to transfer the car with minimal tax implications, reinforcing the inspector’s VAT assessment.
Source Taxlive
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