Cross Border transactions use to be the realm of large multinational companies, now many SME under take cross border transaction daily. It is a rapidly changing field and all businesses need to keep up to date with changes
On 22 December 2010 the European Court of Justice case number C-277/09 RBS Deutschland Holdings held that a taxpayer is not prohibited from exploiting the differences in national tax systems in a cross border transaction leading to a more favorable tax result, provided that the transactions in which the taxpayer is engaged are not entirely artificial and are not entered into for the sole purpose of avoiding taxes.
The Court acknowledge that taxes are a factor that is taken into consideration to determine the final form of a transaction, but when they are not the only factor and the transaction otherwise serves a legitimate business purpose, the final tax result should be respected event when it is predicated on an inconsistent tax treatment of the transaction under two different legal systems.
Keep on top of all these legislative changes can be a nightmare for SMEs so talk to one of our experiences team at Henderson Morgan to discuss your business need and see how we can help your business grow and develop email :email :advisor@henderson-morgan.com
