- Exercise caution when classifying remuneration of financial intermediaries for VAT purposes
- Complainant acted as an asset manager receiving brokerage fees and monthly management fee
- Dispute over whether brokerage fees are for tax-exempt brokerage service or taxable asset management service
- Decision of Federal Administrative Court based on categorization of underlying transaction brokered
- Complainant argues brokerage fees should be exempt fees for trading in securities or ancillary service to brokerage service
- Complainant claims to provide brokerage services in accordance with administrative practice
- Definition of brokerage in MBI 14 as intermediary activity working towards conclusion of contract in money and capital transactions
- FTA considered appellant’s performance as taxable asset management based on MBI 14 section 5.10.3
Source: russellbedford.com.ec
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.
