In August 2020, the competent authority of the Belgian tax administration sent a request for information to the Luxembourg tax administration concerning “Lux Service SA” under the tax convention between Luxembourg and Belgium. The requested information regarding “Lux Service SA” was documentation related to the basis for service payments from a related party in Belgium.
The tax administration in Luxembourg contacted “Lux Service SA” and requested submission of the information and documents. Lux Service SA did not want to accommodate the request and brought the case to the Administrative tribunal for an annulment.
The tax authorities argued that the appeal should be dismissed as unfounded.
The Administrative tribunal dismissed the appeal of “Lux Services SA” and upheld the information injunction issued by the tax administration.
The argument that the tax administration had failed to state the reasons for the information injunction was rejected by the Court as unfounded. According to the Court, the information injunction was based on a sufficiently reasoned request from the Belgian tax administration.
An appeal was then filed by “Lux Service SA” with the Administrative Court.
Judgment
The Administrative Court dismissed the appeal and upheld the decision of the Tribunal.
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