Our tax litigation team has successfully represented a client by providing written comments regarding the new commentary of general anti abuse rule (GAAR) on taxation of cross-border dividends. The client has challenged a commentary, which did not provide any examples and clear explanations on what should be a substance requirement for holding company. In order to provide legal certainty to our client in the future, our law firm participated in legislative procedure by submitting written comments and observations, which were based on the case-law of the CJEU and practice of the other Member States.
The Ministry of Finance considered our remarks regarding substance requirements for the holding companies and transferred it into the official commentary on Law on Corporate Income Tax. It was a victory not only for our client but also to all taxpayers.