In 2013 “Related Party B.V” entered into an agreement with “X BV” for the provision of transportation- and support services for oil and gas.
The Dutch tax authority suspected that the parties were affiliated within the meaning of Section 8b of the Corporate Income Tax Act 1969.
On appeal the district court decided in favor of the tax authority. Based on the documents in the case, the tax authority rightly suspected that there was an affiliation within the meaning of Section 8b of the Corporate Income Tax Act. The tax authority was therefore entitled to reasonably issue information decisions for the Vpb for 2013 to 2016 inclusive.
Nemo Tenetur Principle – self incrimination
“Related Party B.V” argued that it’s right not to incriminate itself had been violated because the information decision(s) had been issued to examine the possibility of imposing a fine.
In this regard, the court observed that pursuant to the law a taxpayer is obliged to provide the Inspector with all data and information that may be relevant to his taxation and that it is ultimately up to the court, which decides on the fine or punishment, to ensure that a taxpayer can effectively exercise his right not to cooperate in self-incrimination. Now that in the present proceedings no tax fine has been imposed yet, the appeal to the nemo tenetur principle does not succeed.
An appeal was then filed with the Court of Appeal.
Judgment
The Court considered the appeal unfounded.
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