Winning before the Supreme Administrative Court - the application of the “stand still” rule is objective
After 4 years of disputes before tax authorities and administrative courts ending with the order of the Supreme Administrative Court (II FSK 3332/16), the tax consultants from SSW Pragmatic Solutions managed to obtain a reimbursement of the tax on civil law transactions (PCC) for their customer.
The case referred to undue collection of the tax by the payer in connection with natural persons bringing non-cash contribution in the form of securities to a joint-stock partnership. In reference to the “stand still” rule arising from the Capital Directive, the Supreme Administrative Court accepted the standpoint of SSW Pragmatic Solutions that infringement of the “stand still” rule us objective, meaning lack of the obligation to pay PCC, regardless of function and status in VAT taxation of the persons bringing the contribution and the company itself.
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