Letting of property by a holding company to a subsidiary
InMarle Participations SARL v Ministre de l’Économie et des Finances(Case C-320/17) (5 July 2018) the CJEU found that the letting of property to a subsidiary constitutes an economic activity for the holding company.
Marle Participations is the holding company of the Marle group which manufactures orthopaedic implants. It lets a building to one of its subsidiaries.
Marle Participations had conducted a restructuring operation which had included the buying and selling of shares. It deducted the VAT charged on various expenses connected with that operation. The French tax authorities refused the deduction on the ground that the expenditure related to capital transactions which fell outside the scope of VAT.
Following Larentia + Minerva (Case C-108/14) it was accepted that if a holding company is involved in the management of its subsidiary VAT incurred in...
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Letting of property by a holding company to a subsidiary
InMarle Participations SARL v Ministre de l’Économie et des Finances(Case C-320/17) (5 July 2018) the CJEU found that the letting of property to a subsidiary constitutes an economic activity for the holding company.
Marle Participations is the holding company of the Marle group which manufactures orthopaedic implants. It lets a building to one of its subsidiaries.
Marle Participations had conducted a restructuring operation which had included the buying and selling of shares. It deducted the VAT charged on various expenses connected with that operation. The French tax authorities refused the deduction on the ground that the expenditure related to capital transactions which fell outside the scope of VAT.
Following Larentia + Minerva (Case C-108/14) it was accepted that if a holding company is involved in the management of its subsidiary VAT incurred in...
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:
