How stores deal with a shortage of supply during covid? How higher income level will impact demand?What
does a shortage reflect about the product?How do you think an increase in demand can impact firms?
Sample Solution
Thus, abuse of law is illegitimate from the instrument point of view. Here, a person improperly uses a legal tool (often a fundamental freedom) with the aim of avoiding national tax measures. Abuse of rights on the other hand is illegitimate from the result point of view; while seemingly legal, the result would be a tax reduction, which is not. 5 Applying abuse of law to VAT: Halifax 5.1.1 Refining the subjective element The subjective element alluded to in Emsland Stärke has been refined further by Halifax. According to Pistone, Halifax is regarded as the landmark decision on abuse for value-added tax (VAT) purposes. Among these is the fact the Court defined abuse in this area as a circumvention of tax rules through transactions, essentially driven by tax reasons. Secondly, Halifax also confirmed the previous case law on tax avoidance; it underlined that the existence of objective factors was sufficient for the existence of abusive practices. 5.1.2 âArtificialityâ and âpurposeâ Halifax concerned a banking company who established call centres for its business. Instead of recovering only 5% of the VAT paid on construction works, Halifax set up a scheme which enabled it to recoup the full amount of VAT incurred through various transactions involving different companies in the Halifax group. The main issue which needed clarification was essentially: âHas the person performing a transaction constituting supply, the right to deduct the input VAT, where such a transaction on which that right is based has been concluded with the sole purpose of tax avoidance?â The Court agreed with the Opinion of Advocate General Maduro insofar as the finding of âar>
Thus, abuse of law is illegitimate from the instrument point of view. Here, a person improperly uses a legal tool (often a fundamental freedom) with the aim of avoiding national tax measures. Abuse of rights on the other hand is illegitimate from the result point of view; while seemingly legal, the result would be a tax reduction, which is not. 5 Applying abuse of law to VAT: Halifax 5.1.1 Refining the subjective element The subjective element alluded to in Emsland Stärke has been refined further by Halifax. According to Pistone, Halifax is regarded as the landmark decision on abuse for value-added tax (VAT) purposes. Among these is the fact the Court defined abuse in this area as a circumvention of tax rules through transactions, essentially driven by tax reasons. Secondly, Halifax also confirmed the previous case law on tax avoidance; it underlined that the existence of objective factors was sufficient for the existence of abusive practices. 5.1.2 âArtificialityâ and âpurposeâ Halifax concerned a banking company who established call centres for its business. Instead of recovering only 5% of the VAT paid on construction works, Halifax set up a scheme which enabled it to recoup the full amount of VAT incurred through various transactions involving different companies in the Halifax group. The main issue which needed clarification was essentially: âHas the person performing a transaction constituting supply, the right to deduct the input VAT, where such a transaction on which that right is based has been concluded with the sole purpose of tax avoidance?â The Court agreed with the Opinion of Advocate General Maduro insofar as the finding of âar>
