In Campsa Estaciones de Servicio SA v Administración del Estado (ECJ Case C-285/10) a Spanish company (C) sold a number of service stations to an associated company in 1993 for less than their market value.
The tax authority issued an assessment charging tax on the sale in accordance with the Spanish VAT legislation then in force (which dated from 1992).
C appealed contending that the Spanish legislation did not comply with Article 11A of the Sixth VAT Directive and was not authorised by Article 27.
The case was referred to the ECJ which held that the Sixth Directive ‘must be interpreted as precluding a Member State from applying to transactions such as those in the main proceedings effected between connected parties having agreed a price which is patently lower than the open market price a rule...
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In Campsa Estaciones de Servicio SA v Administración del Estado (ECJ Case C-285/10) a Spanish company (C) sold a number of service stations to an associated company in 1993 for less than their market value.
The tax authority issued an assessment charging tax on the sale in accordance with the Spanish VAT legislation then in force (which dated from 1992).
C appealed contending that the Spanish legislation did not comply with Article 11A of the Sixth VAT Directive and was not authorised by Article 27.
The case was referred to the ECJ which held that the Sixth Directive ‘must be interpreted as precluding a Member State from applying to transactions such as those in the main proceedings effected between connected parties having agreed a price which is patently lower than the open market price a rule...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
