{"id":1569,"date":"2025-01-24T09:34:03","date_gmt":"2025-01-24T08:34:03","guid":{"rendered":"https:\/\/vwg.nl\/uncategorized\/ook-hof-vindt-uitdividenden-auto-misbruik-van-recht\/"},"modified":"2026-03-03T10:34:51","modified_gmt":"2026-03-03T09:34:51","slug":"court-also-finds-dividing-car-an-abuse-of-right","status":"publish","type":"post","link":"https:\/\/vwg.nl\/en\/ook-hof-vindt-uitdividenden-auto-misbruik-van-recht\/","title":{"rendered":"Court also finds car dividends an abuse of right"},"content":{"rendered":"

For the first time, a Court<\/a> concluded that the transfer of a car for a low fee qualifies as an abuse of rights. In late 2023, we described a case in which the North Holland District Court had already reached this conclusion: Divided car does abuse of right<\/a>. In both cases, the concrete facts and circumstances are decisive for the judgment of the tax court.<\/p>\n\n\n\n

Dividends<\/h2>\n\n\n\n

This act is also known as \u201cdistributing a car\u201d. The BV sells a car to its director-major shareholder (dga) for a (much) lower value than its fair market value. VAT is then due on the purchase price received by the BV (insofar as the purchase price consists of BPM, of course, no VAT is due). The too-low purchase price results in a hidden distribution of dividend by the BV to the DGA, on which dividend tax and substantial interest tax is due.<\/p>\n\n\n\n

The VAT advantage arises because the VAT for the tax measure matches the actual fee. VAT does not have a correction to fair value. A problem arises for VAT only when the remuneration is no more than symbolic.<\/p>\n\n\n\n

Abuse of law<\/h2>\n\n\n\n

There is an abuse of rights where a VAT benefit arises contrary to the purpose and spirit of the VAT regulations and the essential purpose of the transaction(s) is to realise this tax benefit. The court concludes that this is the case, partly on the basis of the short period of time in which transactions take place. The car was bought by the BV in late August 2014, transferred to the BV's name in late October 2014 and driven from mid-November 2014. On 6 January 2015, the car was sold by the BV to its DGA. Moreover, the facts show that the BV also bought (luxury) cars in the years after 2015 and sold them to its DGA for a low fee in the foreseeable future.<\/p>\n\n\n\n

The business reasons put forward by the BV for the transaction were that the car was not sufficiently presentable at car events and that the DGA's wife wished to drive the car privately because it was an automatic. Of these arguments, the court considered that they might explain why the car was sold to the DGA, but not why this was done for a consideration of at most a quarter of the car's value.<\/p>","protected":false},"excerpt":{"rendered":"

Voor het eerst heeft ook een Hof geconcludeerd dat de overdracht van een auto tegen een lage vergoeding kwalificeert als misbruik van recht. Eind 2023 beschreven we een zaak waarin de Rechtbank Noord-Holland al tot deze conclusie kwam: Uitdividenden auto wel misbruik van recht. In beide zaken zijn de concrete feiten en omstandigheden doorslaggevend voor […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1569","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"acf":[],"_links":{"self":[{"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/posts\/1569","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/comments?post=1569"}],"version-history":[{"count":1,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/posts\/1569\/revisions"}],"predecessor-version":[{"id":3581,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/posts\/1569\/revisions\/3581"}],"wp:attachment":[{"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/media?parent=1569"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/categories?post=1569"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/tags?post=1569"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}