- The court ruled there was abuse of law due to artificial structures aimed solely at tax benefits.
- The Swedish company X was part of a structure involving a Jersey company and a Dutch branch.
- The Dutch branch provided services from 2013 to mid-2018, claiming VAT deductions.
- The Jersey entity was not liable for VAT on these services.
- The tax inspector claimed the structure was purely artificial, leading to a legal challenge.
- The court found the structure artificial, denying X the right to VAT deductions.
- Penalties were annulled due to a defensible position.
- The court confirmed the artificial nature of transactions involving debt portfolios.
- The transactions were primarily for tax advantages, lacking economic reality.
- The court upheld the lower court’s decision.
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.
