Ruling description
In its judgment of January 15, 2014, the Provincial Administrative Court (WSA) in Warsaw (case no. III SA/Wa 1928/13) ruled that a bankruptcy receiver was not required to correct input tax under the procedure set forth in Art. 89b (1) of the VAT Act (in the version which took effect on January 1, 2013) if the creditor cannot correct output tax under the “bad debt relief” procedure due to the debtor being bankrupt.
For the attention of company managers and financial, tax, legal and litigation departments.
Pepeliaev Group advises of the publication, on 13 February 2013, of Resolution No. 11 of the Plenum of the Russian Supreme Arbitration Court (SAC) dated 25 January 2013 “On paying value added tax when the property of an insolvent debtor is disposed of”. This resolves, to the benefit of creditors and buyers of bankrupt companies’ property, issues relating to the procedure and regime for paying VAT.
Legal developments
The April 29, 2020 edition of the Official State Gazette -BOE- published Royal Decree-Law 16/2020, of April 28, 2020 on procedural and organizational measures to confront COVID-19 in the justice system, aimed primarily at getting the justice system ready for a return to normal operations by the courts and tribunals, finding a quick way through the build-up of proceedings suspended by the declaration of the state of emergency, and adopting measures to cope with an increase in lawsuits as a result of the extraordinary measures that have been adopted and of the economic climate arising
《国家税务总局关于纳税人资产重组有关增值税问题的公告》(02/18/2011)
The State Administration of Taxation released the Announcement onIssues Concerning Value-Added Tax Relevant to Taxpayers’ Assets Restructuring (the “VAT Announcement”) on February 18, 2011. The effective date of the Announcement is March 1, 2011.
The Finance Bill 2013 introduces a number of provisions that impact on the VAT treatment of transactions involving liquidators, receivers and mortgagees in possession (the “Insolvency Practitioners”). These provisions were largely expected following the consultation process on the tax implications of appointing a receiver which has been ongoing since July 2012.
Two recent judgements deal with the issue in two different cases: the Court of Santa Maria Capua Vetere(17 February 2016) allows a partial payment of VAT, contrary to precedents of the Supreme Court and ofthe Constitutional Court, while the Court of Appeals of Bologna (24 December 2015) confirms that theVAT refund claim’s satisfaction depends on the value of the related assets
The case
According to Legislative Decree. No. 175/2014, in case of defaulting transferee / buyer, the transferor / supplier is entitled to recover the VAT originally paid to the Treasury, under the condition that the transferee / buyer - who has not paid his debt - has entered into a debt restructuring agreement with creditors pursuant to Article 182-bis of the Italian Bankruptcy Law (IBL) or into an out-of-court reorganization plans pursuant to Article 67, third paragraph, letter d) of the Italian Bankruptcy Law (IBL)
The New Provision
Following the latest reform of the Bankruptcy Act, the Spanish Tax Authorities have established a mechanism to ensure the collection of the applicable VAT in the acquisition of property from companies declared bankrupt.
Until 1 January 2012, Article 84 of the VAT Act 37/1992, when regulating the reversal cases of the taxpayer liable for this tax, no reference is made to companies declared bankrupt and the cases of their goods being acquired. However, this situation has changed since 1 January 2012.
I. Key facts
What are the key facts on doing business in the UAE?
When considering doing business in a foreign jurisdiction, an investor must consider a wide range of commercial, political and capital security issues that will impact the final decision of investing in a particular country.
Over the last two decades the United Arab Emirates have proven itself to be a very attractive hub for investors to locate their business for many reasons, below are just a few of them: