Stricter conditions for tax deductibility of expenses?
Some rulings by the Supreme Administrative Court (SAC) have surprising outcomes and de facto narrow the space for recognising expenses as tax-deductible by requiring proof that that a service was received from a specific supplier.
Defence against unlawful procedure to remove doubt may be well worth it
In its recent judgement, the Supreme Administrative Court (SAC) emphasised that the procedure to remove doubt should only serve to clarify concrete uncertainties. It is a tool to ascertain or to check, immediately and without delay, whether a tax…
Interest on long-retained excess deductions liable to income tax?
Interest on long-retained excess deductions of up to 14% p.a. was first awarded to a taxable entity by the Supreme Administrative Court more than two and a half years ago. Since then, a number of administrative courts proceeded similarly and…
SAC on VAT exemption
In tax inspections, tax offices increasingly focus on VAT fraud connected with the transit of goods. What to watch out for when delivering goods to another EU member state, and how not raise the tax authority’s suspicions? The recent Supreme…
How to deliver data messages with powers of attorney
Delivering messages to data boxes have been causing interpretation uncertainties since 2009 when data boxes were introduced in our legislation, in particular where the formal elements of documents delivered via data boxes are concerned. Both civil…
How to keep R&D expense records separate
To claim a research and development deduction in a tax return, taxpayers have to correctly assess the activities, prepare a project documentation, and properly record related expenses, separately from other costs. But what exactly does such separate…
Consideration for transfer of technical improvement – good news on the horizon?
In the autumn of 2014, the Supreme Administrative Court’s ruling, stating that the right to carry out tax depreciation of a technical improvement cannot be transferred between tenants, stirred the tax waters considerably. The case has now returned…
Binding rulings now also on allocation of profits to permanent establishments
Thanks to the budget committee’s amending proposal, the above mentioned amendment to the Income Tax Act (Print No. 873) expands the applicability of binding rulings. These will now also apply to the method in which profits are allocated to a…
Duty to call for additional tax returns not absolute
The Supreme Administrative Court (the SAC) recently had to decide under what circumstances the tax administrator is obligated to call upon taxpayers to file an additional tax return before commencing a tax inspection.
The SAC: Are statutory representatives liable to VAT?
In its recent judgment (2 Afs 100/2016–29) the Supreme Administrative Court held that the performance of an office as statutory representative in a limited liability company meets the criteria of an independently performed economic activity and…
What information may the tax authority ask from your bank?
How resistant is bank secrecy against a call made by the tax authority? What questions about your account must your bank answer? Will the tax administrator learn from your bank that you use internet banking and who has disposal rights to your…
How to correctly treat research and development?
A recent decision of the Supreme Administrative Court regarding a research and development expenditure deduction again emphasised the importance of expert opinions in cases of doubt. During inspections the tax authority must take into account the…