The Court of Appeal in The Hague rules that the legislator has not created confidence that cross-donations will not be combated. The State Secretary for Finance has informed the House of Representatives that it is considered a construction that will be actively combated.
X and her brother (see 23/727) both received a donation of € 100,000 from their mother in mid-2017. The next day they both receive a donation of €100,000 from a third party. This third party was a business associate of their father. X’s mother then donates €50,000 each to the four children of this business relationship. According to the inspector, According to the District Court of The Hague, the second donation is in reality an indirect donation from the mother. The home ownership exemption does not apply to this. This can only be applied to the first donation. X argues on appeal that the legal text does not exclude the construction.
The Court of Appeal in The Hague rules that the legislator has not created confidence that cross-donations will not be combated. The State Secretary for Finance has informed the House of Representatives that it is considered a construction that will be actively combated. The home ownership exemption for ‘parent-child’ donations has already been exhausted for X due to the first donation. The inspector therefore rightly appeals to tax law requalification for the second donation. There is also a case of evasion of the law (fraus legis), because the donation by the other person is deemed to bring about a transfer of assets from the mother to X with the overriding motive of avoiding gift tax. X’s appeal is unfounded.
[Bron Uitspraak]
Articles of law:
Succession Act 1956 33
31
