Tax & Legal

The dispute before the Supreme Tax Court concerned the question of whether the tax office was correct to adjust an input VAT deduction of the plaintiff - following a successful appeal under insolvency law - where the plaintiff later received a refund of the import VAT paid. The court could not see any reasons why the plaintiff should receive a refund even though it no longer owed the tax.

The Supreme Tax Court has refused to allow an adjustment to taxable income in the year of discovery of a tax auditor’s error to a year now closed.