Greg Sinfield Head of Indirect Tax at Lovells discusses the implications of the ECJ's decision in Kretztechnik and what might happen next
The European Court of Justice (ECJ) has given its decision in Kretztechnik.1 In summary the ECJ followed the Opinion of the Advocate-General2 and decided that:
● a share issue is not a supply; and
● input tax incurred in relation to a share issue is recoverable at the company's residual rate.
The ECJ's decision raises a number of questions. What does the decision mean? What should HM Revenue & Customs and taxpayers do now? Are there any wider implications?
The background and facts of the case are set out in my earlier...
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Greg Sinfield Head of Indirect Tax at Lovells discusses the implications of the ECJ's decision in Kretztechnik and what might happen next
The European Court of Justice (ECJ) has given its decision in Kretztechnik.1 In summary the ECJ followed the Opinion of the Advocate-General2 and decided that:
● a share issue is not a supply; and
● input tax incurred in relation to a share issue is recoverable at the company's residual rate.
The ECJ's decision raises a number of questions. What does the decision mean? What should HM Revenue & Customs and taxpayers do now? Are there any wider implications?
The background and facts of the case are set out in my earlier...
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:
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