- A company sold a car to its DGA for a very low price, resulting in the inspector imposing an additional turnover tax assessment and a misdemeanor fine.
- The North Holland District Court disagreed with the inspector’s opinion that VAT is due on the disguised dividend and that the criminal fine was correctly imposed.
- The court stated that VAT should only be based on the invoice amount, and there was an abuse of law as the company only used the car for business for a short time and then sold it to the DGA for an artificially low price to obtain a tax benefit.
- The disguised dividend payment was counted as part of what the DGA actually sacrificed to get the car.
- The court quashed the offense fine as there is an arguable point of view.
Source Taxence
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