- The Court of Cassation has ruled that the failure to notify the guarantor of tax assessment notices does not affect the validity of a surety policy for VAT refunds.
- In a specific case, a company provided guarantees for VAT refunds through surety policies.
- After the refunds were deemed ineligible, the tax agency sent notices of disallowance to the taxpayer and a payment request to the guarantor.
- The guarantor went bankrupt, and the tax agency requested to be included in the bankruptcy proceedings.
- The request was rejected on the grounds that the lack of notification to the guarantor rendered the surety policy ineffective.
- The Court ruled that the surety policy is not dependent on the notification of tax assessment notices to the taxpayer.
- Previous rulings have clarified that the purpose of a surety policy is to compensate the unsatisfied creditor with a predetermined sum of money in place of the debtor’s failure to perform.
Source: eutekne.info
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.
