The Arnhem-Leeuwarden Court of Appeal ruled that X did not provide sufficient evidence for a greater right to deduct input tax than appears on the basis of the records. It is not plausible that there is taxed letting. X leases as a subtenant a shop premises for the operation of a liquor store. There is no sales tax on the invoices for the rent. The tax inspector imposes additional assessments. The Arnhem-Leeuwarden Court of Appeal ruled that X was not entitled to a deduction because he did not make it plausible that he had opted for taxed letting. The right to deduct the other connection differences has also not been substantiated. X acted so lightly with regard to the connection differences and the deduction of input tax that an infringement penalty on the grounds of gross negligence is appropriate and necessary. The appeal is well-founded insofar as it concerns the recalculation of the offence fine and mitigation for exceeding the reasonable time limit.
Source Taxlive
