One of our client migrated from an offshore jurisdiction to Luxembourg end of 2020. In 2021, he filed its 2020 corporate tax returns for the period beginning from its migration date till the end of the civil year.
The Luxembourg tax authorities issued directly a tax assessment based on article 100A of the Abgabenordnung.
The client however made a mistake in its first corporate tax returns as he did not neutralize the profit realised during the offshore period.
Tax assessment issued based on article 100A of the Abgabenordnung is in principal final except if the Luxembourg tax authorities would consider within the 5 year period that the tax assessment must be revisited. Hence, it does in principle not allow the taxpayer to correct a mistake.
Despite this case is not addressed by the law, we successfully got the agreement of the Head of the Luxembourg tax authorities to revisit the previous tax assessment issued.
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