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Tax Administration strikes down sham company structures

23 October 2012

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Approved Changes

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Hungary

According to a recent press release on the website of the National Tax and Customs Administration (NTCA), the NTCA is willing to litigate cases in which directors fraudulently take out money from companies and deliberately bring companies into liquidation without paying back their debts. The companies concerned are often managed by individuals not having any legitimate functions in the companies whereas the rightful directors do not exercise any legal power assigned to them. Based on the press release, the NTCA has recently won a case in which the FovárosiÍtélotábla, the second-instance tribunal of the capital, declared for the first time...