In a landmark decision, the Tax Tribunal vindicated Antonis Askanis Ltd by annulling a VAT assessment of €1,261,344 imposed by the Tax Commissioner.
Patrikios Legal played a crucial role in this victory, with Partner Angelos Onisiforou co-contributing key arguments along with representatives from Chelco VAT Ltd and Antonis Askanis Ltd, who were instrumental in securing this favourable outcome.
The Tax Tribunal vindicates Antonis Askanis Ltd
31 May 2024 – In a landmark decision, the Tax Tribunal has recently annulled a decision of the Tax Commissioner for enforcement of Value Added Tax (VAT) of €1,261,344 to the land development company, Antonis Askanis Ltd, concerning the sale of a property in Limassol.
In a unanimous decision dated 18 April 2024, the Tax Council ruled that the first occupation occurred in the said mansion as provided for in the VAT legislation at the time of the sale and therefore the sale was exempt for VAT purposes.
The Tax Tribunal based its decision on the arguments put forward by the representatives of Antonis Askanis Ltd, CEO of Chelco VAT Ltd, Alexis Tsielepis, VAT Advisor of Chelco VAT Ltd, Marios Nicolaides, Partner of Patrikios Legal, Angelos Onisiforou and the Director of the applicant, Christiana Askanis.
Led by Mr. Tsielepis, the team of the Askanis tax advisors argued that the rental of the villa prior to the sale for a total rental period of 38 days, and its use as a "showhouse" for approximately 12 months, fall within the provisions of the interpretation of the VAT Law's term "first occupation".
The Board of Taxes agreed with this position, stating that the legal background set out in the Legislature with respect to the interpretation of the term was fully satisfied and therefore the Tax Department's position of imposing VAT on the sale as a sale prior to the first occupation was incorrect and was consequently annulled.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.