Tax Deduction Dispute for Management Services in Project Companies Owned by Holding Companies

• A company complained about a binding ruling stating that the company’s provision of management services to project companies, in which the company owned capital shares, would not be considered economic activity
• The National Tax Tribunal found that it was actually the company’s parent company that provided the management services to the project companies
• The contract terms stating that the company provided the services were deemed artificial and only possible due to agreements between parties with overlapping economic interests
• The National Tax Tribunal upheld the binding ruling from the Tax Council
• References: Sections 3, 4, and 37 of the VAT Act

Source: info.skat.dk

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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