A holding company deducts over \u20ac2 million in management costs. These were invoiced by a foreign company managed by the holding company\u2019s director. The invoice is dated March 2020, covers the period from 2017 to 2022 inclusive, and is never paid. The tax inspector disallows the deduction and the interest on that amount. <\/p>\n
The company forms a tax group with two subsidiaries and loses its sole shareholder in June 2020. His widow has been a director since November 2018 and inherits the shares. In March 2020, that director sends an invoice for \u20ac2,167,760 to a subsidiary via her foreign company, for managing legal proceedings against a bank. The itemisation covers the period from 2017 to 2022 inclusive, and therefore also includes work yet to be carried out. No payment is made. The amount is recorded in the current account.<\/p>\n
For 2020 and 2021, tax returns will only be submitted once the tax assessments have been issued. Anyone who allows the deadline set out in the reminder to lapse fails to submit the required tax return. The General Tax Act (AWR) provides for a reversal and shift in the burden of proof in such cases. However, the reversal of the burden of proof does not apply in this case. As only the deduction of expenses is in dispute and the burden of proof in this regard already rests with the company, there is nothing to reverse and only the increased burden of proof remains. The company must therefore demonstrate convincingly that the expenses are business-related.<\/p>\n
The company has failed to meet this burden of proof. The court considers an invoice covering five years \u2013 past, present and future \u2013 to be highly unusual; the failure to pay reinforces the doubts. There is no written agreement regarding the stated hourly rate of $ 150, nor is there any record of the arrangements made in February 2020. The expenses amount to the same sum every month and lack any justification. Furthermore, the lawyers who testify regarding the director\u2019s involvement regard her as a director of the company itself. The loss of the deduction also has consequences for the interest.<\/p>\n
A holding company is deducting over \u20ac2 million in management costs. These have been invoiced by a<\/p>","protected":false},"author":2,"featured_media":4657,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-4656","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\/4656","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=4656"}],"version-history":[{"count":0,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/posts\/4656\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/media\/4657"}],"wp:attachment":[{"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/media?parent=4656"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/categories?post=4656"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/tags?post=4656"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}