Tax & Legal

Categories: All (8 found)

1. 09.09.2015

   Arm’s length related-party loan interest to include risk upl ...

   The Supreme Tax Court has held that a write-off of an irrecoverable related-party loan is not subject to income adjustment under the arm’s length rules, although the interest rate should reflect the bad debt risk.

   Categories: Supreme Tax Court cases

   Keywords: bad debt, related-party loan, arm's leng ...
2. 24.06.2014

   No write-off of amount due from equity investment

   The Supreme Tax Court has confirmed that the provision disallowing a debt write-off from a company in which the creditor holds or held over 25% of the shares is to be taken literally.

   Categories: Supreme Tax Court cases

   Keywords: bad debt, equity investment
3. 18.09.2013

   No VAT on sale of bad debts

   The Supreme Tax Court has held that a difference between the agreed price for a bad debt package and its agreed market value is, in cases of doubt, an ancillary service to the main supply.

   Categories: Supreme Tax Court cases

   Keywords: Non-Performing Loans (NPL), bad debt, Sa ...
4. 27.10.2011

   Sale of bad debts without recourse not a provision of servic ...

   The ECJ has held that the sale of currently due, but doubtful, debts at their agreed market value and without further recourse to, or obligations towards, the seller is a VAT-free sale of debts, rather than a taxable debt collection service.

   Categories: From Europe

   Keywords: bad debt, debt collection, without recou ...
5. 14.07.2011

   Purchase of bad debts not subject to VAT?

   An ECJ advocate general has suggested the purchase of a bad debt portfolio be seen as such and therefore as exempt from VAT. If, however, it is a debt collection service, the VAT basis is the difference between the purchase price and the subsequent collections.

   Categories: From Europe

   Keywords: bad debt, debt collection, mortgage
6. 05.04.2011

   Restrictions on write-offs of receivables from foreign relat ...

   The finance ministry has reacted to a Supreme Tax Court case allowing a write-down on a receivable from a domestic subsidiary with a decree to the effect that an unsecured loan to a foreign related party would not generally be at arm's length.

   Categories: Official Pronouncements

   Keywords: bad debt, foreign related parties
7. 02.03.2011

   No bad debt deduction on tax-free sale of shares

   The Supreme Tax Court has held that irrecoverable proceeds from the tax-free sale of shares reduce the tax-free gain and are not a deductible bad debt.

   Categories: Supreme Tax Court cases

   Keywords: capital gain, bad debt
8. 05.01.2011

   No sale of debts where bad debt risk remains with seller

   The Supreme Tax Court has held that economic ownership in a company's trade debtors did not pass where the buyer agreed to refund the unneeded portion of an excessive discount for bad debts.

   Categories: Supreme Tax Court cases

   Keywords: Non-recourse sale, sale of debts, econom ...