In a reference for a preliminary ruling from Bulgaria the European Court of Justice is asked whether – in absence of consideration for a service due to the uncertainty of a contingency fee - the advice given by a lawyer against statutory minimum fee payable by the unsuccessful opposing party in the event of a successful outcome is a taxable transaction within the meaning of the VAT Directive. The Advocate General considers this to be a transaction subject to VAT in contrast to the ECJ case law which, in her opinion, has led to some uncertainty and likely misinterpretations in practice.
The Supreme Tax Court has held that debt provisions otherwise disallowed in the tax accounts but which are assumed by an acquirer as part of a business takeover may be retained in the tax accounts of the latter until utilised or no longer required.
