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Jun 16th
Home arrow taxbites arrow The Ruling Committee is back on track

The Ruling Committee is back on track

Over the last five years, the Ruling Committee has built up a track record for delivering speedy advance rulings on all sorts of tax issues. More importantly, it grants rulings that offer legal certainty to taxpayers and investors.

When the appointment of three board members of the Ruling Committee had to be confirmed by the government in October, the socialist party blocked the decision. They questioned whether that was a decision for a caretaker government to make. Further, they had become weary of this independent department within the Ministry of Finance that they suspected of granting tax favors that lean towards organized tax evasion.

Other departments within the Ministry of Finance also feel the Ruling Committee gives away tax concessions to taxpayers who would not normally be entitled to them. The Special Tax Inspection (in charge of combating large organized fraud) felt that companies apply for a ruling specifically to block their investigations. In particular, it fears abuses with the notional interest deduction.

Last year, a clash with the Special Tax Inspection was narrowly avoided when the department attempted to investigate a company that had obtained a ruling. The Ruling Committee had to react sharply as it is keen on retaining its independence. If the committee is to have a future, it cannot have other departments questioning its rulings. (read the article on AmCham Connect).

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