People who use their company car to go home for lunch are making a business trip, a court in Arnhem has ruled.
That means the tax office cannot consider driving home for lunch private use of a company car – which could be liable to tax.
The case centred on a businessman who has a company car with a catalogue value of €120,000 and regularly drives home to eat in the middle of the day.
People who drive over 500 kms a year for private purposes in their company car have to pay income tax on a fifth of the car’s catalogue price.
The tax office said the lunch-time visits were private and he therefore had to pay over €40,000 in back taxes. But the Arnhem judge disagreed and said the trips were ordinary home to work journeys and did not count towards the private use limit.
The tax office is to appeal against the ruling, the Telegraaf says.
Thank you for donating to DutchNews.nl.
We could not provide the Dutch News service, and keep it free of charge, without the generous support of our readers. Your donations allow us to report on issues you tell us matter, and provide you with a summary of the most important Dutch news each day.Make a donation