Slovenia vs “Shopping Center Loan”, August 2016, Administrative Court, Case No UPRS Sodba I U 1570/2016-12

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Category: Financial Transactions, General Anti-Avoidance Rules (GAAR) | Tag: , , ,
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At issue was interest in relation to loans between related parties.

Pursuant to Article 32(1) ZDDPO-2, interest on loans, except in the case of borrowers from banks and insurance companies, received from a shareholder or partner who, at any time during the tax period, directly or indirectly owns at least 25% of the shares or interests in the capital or voting rights of the taxable person, is not recognised as an expense if, at any time during the tax period, such loans exceed four times (in accordance with the transitional provision 81. The excess of loans is determined by reference to the amount and duration of the excess of loans during the tax period, unless the taxpayer proves that the excess of loans could have been obtained from a lender who is an unrelated person. The claimant argued in the proceedings that it could also have obtained the excess loans from an unrelated person, but failed to prove this.

 
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UPRS_Sodba_I_U_1570_2016-12-19.09.2017

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