Following an audit of Intralot S.A., the tax authorities issued an adjustment to its taxable income, where intra-group services provided by a related company in Cyprus – Intralot International Ltd. – had been disallowed.
Intralot S.A. disagreed with the adjustment and filed an appeal, which was later dismissed by the Administrative Court of Appeal.
Judgment of the Court
The Supreme Administrative Court allowed the appeal and remanded the case to the Administrative Court of Appeal for further examinations.
Excerpt
“Because the Administrative Court of Appeal in the present case examined the judgment affected by the aforementioned ground of appeal on the basis of the erroneous understanding that proof of expenditure incurred abroad is legally possible only on the basis of invoices bearing the content required by the provisions of Article 12 of the VAT Code. That judgment, however, is not in accordance with the findings of the abovementioned decisions of the Council of State, which the appellant company relies on in support of its argument under Article 53(3) of Regulation No 40/94. 18/1989, in which the provisions of Article 24 of the Code of Fiscal Data (Decree 99/1977), which are identical to the applicable provision of Article 15 of the Code of Books and Data (Decree 186/1992), were interpreted. Accordingly, that plea is well founded, as is the plea in law relied on in the present appeal, since, as stated above, the rules laid down in Article 12 of the VAT Code are not applicable. invoices are not the sole means of proving expenditure incurred abroad, which may be proved by other means, taking into account the circumstances of the particular case, circumstances which the Administrative Court of Appeal did not examine in this case.
Consequently, the judgment under appeal cannot be set aside and the case, which requires clarification as to its substance, must be referred back to the Administrative Court of Appeal for a new and lawful decision, which will examine the issues relating to the raising before it of the abovementioned unanswered essential plea in law – the plea in law raised in the application.”
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