Whether sale of shares was ‘transfer of a totality of assets’
In the Netherlands case of Staatssecretaris van Financiën v X BV (CJEU Case C-651/11) the shares in a company had been held by four different companies before they were sold to a public company in 1996. One of the vendor companies (X) which had held a 30% shareholding reclaimed input tax on the professional services relating to the sale. The tax authority issued an assessment to recover the tax and X appealed. The case was referred to the CJEU for a ruling on the interpretation of art 5(8) of the EC Sixth Directive. The CJEU held that the disposal of a 30% shareholding did not amount to ‘the transfer of a totality of assets’ within art 5(8) ‘irrespective of the fact that the other shareholders transfer all the other shares in that company...
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Whether sale of shares was ‘transfer of a totality of assets’
In the Netherlands case of Staatssecretaris van Financiën v X BV (CJEU Case C-651/11) the shares in a company had been held by four different companies before they were sold to a public company in 1996. One of the vendor companies (X) which had held a 30% shareholding reclaimed input tax on the professional services relating to the sale. The tax authority issued an assessment to recover the tax and X appealed. The case was referred to the CJEU for a ruling on the interpretation of art 5(8) of the EC Sixth Directive. The CJEU held that the disposal of a 30% shareholding did not amount to ‘the transfer of a totality of assets’ within art 5(8) ‘irrespective of the fact that the other shareholders transfer all the other shares in that company...
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