Tax Law
Overview
Consultation on VAT, corporate taxes and individual income taxes.
Tax questions rarely arrive on their own. They appear at the end of another decision — how to structure a transaction, how to distribute profit, how to document a manager's remuneration, whether VAT applies on the sale of a property. Asked before the transaction, the question usually has several answers. Asked after a tax audit, it has one.
Our practice in this area was built in the legal department of a major audit firm and covers both advisory work and defence during a tax audit. We have advised banks, oil and energy companies, and telecommunications and IT businesses on VAT and corporate taxation, and we now apply the same approach to the needs of small and medium-sized businesses.
We represent clients before the revenue authorities in audits and inspections, in administrative appeals and before the administrative courts.
What the service covers
- VAT advice — registration, input tax credit, intra-Community supplies and acquisitions, triangular transactions, reverse charge
- Corporate income taxation — temporary tax differences, hidden profit distribution, thin capitalisation rules
- Withholding taxes and the application of double taxation treaties
- Taxation of individuals — dividends, managers' remuneration, rental income and income from the sale of assets
- Tax aspects of real estate transactions and corporate reorganisations
- Transfer pricing documentation
- Local taxes and fees
- Representation during audits and inspections by the revenue authorities
- Appeals against tax assessments, administrative and before the courts
- Interim measures in tax proceedings
- Tax aspects of employment and contractual relationships
Who it is for
Companies facing a transaction, reorganisation or profit distribution where the tax effect should be assessed in advance; companies served with an audit assignment order or a tax assessment; and managers and owners deciding how to structure remuneration or dividends.
Frequently asked questions
We have received an audit assignment order. What should we do?
First — do not send documents or written explanations before the scope of the audit is clear: which periods and which liabilities are being examined. Many of the problems in audit proceedings are created by hasty written explanations given without legal review. It is advisable to involve a lawyer when the order is served, rather than after the assessment is issued, because the material gathered during the audit is also used in the subsequent appeal.
Our input tax credit was denied because of our supplier. Is an appeal worthwhile?
Often it is. Denial of input tax credit because of a supplier's conduct is an area with extensive case law, including from the Court of Justice of the European Union, and the outcome turns on what has been established about the reality of the supply and the recipient's knowledge. The assessment is specific to the case — made on the documents and on the reasoning of the assessment, not on a general rule.
Is VAT due on the sale of real estate?
It depends on the type of property and on the capacity of the seller. The regime differs for buildings that are not new, for regulated plots and for land that is not for construction, and for certain supplies the seller may opt to charge tax. This is one of the questions that must be settled before the preliminary contract is signed, not at completion.
Should profit be paid out as a dividend or as remuneration?
The two routes carry a different overall tax and social security burden and different documentation requirements. The choice depends on the amount, on whether the individual is insured on another basis, on whether a shareholders' resolution exists, and on whether the company has distributable profit. The calculation is made in advance and for the specific case — a general rule misleads here.