A woman holds 20% of the certificates in a holding company. The operating company is subject to a \u2018turbo liquidation\u2019 and the business is transferred to her father as a sole trader. No one declares any income from a substantial interest. Years later, the tax inspector imposes additional tax assessments. The daughter argues that the accelerated liquidation means there were no gains and therefore no income from a substantial interest. The court rejects this argument.<\/p>\n
The father runs his business through an operating company under a holding company, of which he holds forty certificates. In 1994, he gifted sixteen certificates to his two children, eight to each. The daughter therefore holds 20% and thus has a substantial interest. With effect from 1 January 2018, the father wishes to continue the business as a sole trader. The operating company is dissolved via a \u2018turbo liquidation\u2019 \u2013 a rapid termination without liquidation, provided there are no assets. The accountant assumes a smooth transition but does not apply for a ruling. No AB income is declared in the 2018 income tax returns, even though liquidation normally results in a capital gain.<\/p>\n
In June 2019, the inspector issued the 2018 tax assessments in accordance with the tax returns. In December 2019, the operating company stated in its corporation tax return that it had been wound up. An audit reveals that no \u2018silent return\u2019 ruling had been applied for and that there was a claim of over two ton against the father. This represents value for the certificate holders. The corporation tax inspector alerted his colleague in the income tax department, and in October 2023, additional tax assessments were issued. The daughter and her tax partner each had to pay \u20ac22,246 in income tax on their AB income.<\/p>\n
The daughter argues, first and foremost, that the tax inspector is not entitled to make a supplementary assessment. After all, the dissolution had been registered with the Chamber of Commerce and her status as a certificate holder was known. Furthermore, the sudden increase in assets of two ton in her father\u2019s tax return, in which the debt to the private limited company had disappeared, should have raised the inspector\u2019s suspicions. The court rejects both arguments. The corporation tax return in which the dissolution was mentioned was only submitted after the income tax assessments had been issued. The sudden increase in the father\u2019s assets does not give rise to a duty to investigate the daughter\u2019s tax returns. There is therefore a new fact.<\/p>\n
According to the daughter, 'turbo liquidation' means there are no assets and therefore no distribution. The court swiftly dismisses this argument. A \u2018turbo liquidation\u2019 is only permitted if there are no longer any assets, but that does not mean that there were in fact no assets at all. The claim against the father indicates a value. How that value disappeared remains unclear. The daughter provides no evidence. At the hearing, the representative admits that it is \u2018speculation\u2019 as to how the matter was settled. The court therefore accepts the inspector\u2019s calculation and upholds the additional tax assessments.<\/p>\n
A woman holds 20% of the certificates in a holding company. The operating company is being wound up<\/p>","protected":false},"author":2,"featured_media":4591,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-4590","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"acf":[],"_links":{"self":[{"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/posts\/4590","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\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/comments?post=4590"}],"version-history":[{"count":0,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/posts\/4590\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/media\/4591"}],"wp:attachment":[{"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/media?parent=4590"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/categories?post=4590"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/tags?post=4590"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}