Tag: No invoice
Procedural challenge arising where a taxpayer claims a deduction for intra-group services or costs but cannot produce a valid invoice. Tax authorities disallow the expense, arguing absence of documentation proves no genuine supply occurred or that the arm’s length price cannot be verified.
Germany vs “Consulting GmbH”, July 2024, Bundesfinanzhof, Case No I R 4/21
A German consulting company claimed exemption from tax on income earned through permanent establishments in Russia and Romania under applicable double tax treaties. The German tax authority denied relief, finding that domestic activity reservations applied due to the involvement of a German-resident person in the PEs' activities. The Bundesfinanzhof confirmed the lower court ruling and upheld the tax authority's position in favour of taxation ... Read more
Greece vs “INTRALOT S.A. “, October 2023, Supreme Administrative Court, Case No A1721/2023 – ECLI:EL:COS:2023:1004A1721.17E1775
Following a tax audit, Greek authorities disallowed deductions claimed by Intralot S.A. for intra-group services provided by its related Cyprus entity, Intralot International Ltd., on the basis that valid invoices were absent. The Administrative Court of Appeal upheld the disallowance. Greece's Supreme Administrative Court allowed the appeal in 2023, finding the lower court had incorrectly applied VAT invoicing rules to assess deductibility, and remanded the case for further examination ... Read more
Czech Republic vs EVEREST servis s.r.o., September 2023, Regional Court, Case No 54 Af 6/2022 – 233
A Czech company claimed VAT deductions and cost deductions for media and advertising space allegedly purchased from two suppliers. The tax authority denied the deductions, finding the transactions were fictitious and that the taxpayer knew or should have known it was participating in VAT fraud. The Regional Court dismissed the company's appeal in September 2023, ruling in favour of the tax authorities on all grounds ... Read more
Germany vs “MEAT PE”, July 2023, FG Munich, Case No 7 K 1938/22
A Hungarian company's German permanent establishment performed meat cutting work under service contracts. Following a tax audit, German authorities issued additional income assessments under the BsGaV profit allocation ordinance. The PE challenged the assessment, arguing the ordinance lacked legal basis under Section 1 AStG. The Munich Tax Court agreed, ruling in the taxpayer's favour and setting aside the assessment in July 2023 ... Read more
Chile vs Sociedad de Ahorro Homar Ltda., November 2018, Corte Suprema de Chile, Case N° ROL: 94862-2016
A Chilean holding company claimed deductions for accounting and administrative services provided by a related party under a 2011 contract. The tax authority disallowed the deductions after finding insufficient evidence that services were actually rendered. Chile's Supreme Court upheld the assessment in 2018, confirming the taxpayer bore the burden of proof and had failed to demonstrate the nature or substance of each service charged ... Read more