The case

A pecuniary benefit within the meaning of the anticipatory tax may also considered if converted salary payments or compensation are made to related parties. Converted fees paid to the beneficial owner of the company and to a director of a group company resident abroad are considered a pecuniary benefit if their appropriateness is not proven. Dismissal of the appeal. For more information, see link (Judgment of 5 October 2021 (A-4642/2020)).

Source: Taxblog and bvger

The commentary

A main argument for dismissing the complaint was that the director has been working with the company for more than 35 years. During this time, the cooperation was never formalised by a written contract or by records of services rendered. Other managers employed in the same company were hired on the basis of a written contract. This finding leads the court to qualify the director’s status as a related party (4.2)

This publication has been prepared solely for information purposes and is does not constitute a recommendation, a solicitation, or an offer. The information on which this publication is based has been obtained from sources that we believe to be reliable and in good faith, but we have not independently verified such information and no representation or warranty, express or implied, is made as to its accuracy. All expressions of opinion are made as of the date of publication and may be subject to change without notice. k-flash and all related affiliates accepts no liability or responsibility whatsoever for any consequential loss of any kind arising out of the use of this publication or any part of its contents. The use of this publication should not be regarded as a substitute for the exercise by the recipient of his or her own judgment. This publication is not directed to any person in any jurisdictions that prohibit such publication.