Escrow Agreement for Box Schemes?

2020. May 10., Sunday

May 6,2014

Box schemes are in the trap of the unclear legal environment, since most of these forms are operating in association form which business activities may not exceed 10 % of their total activity, or they are subject to corporate tax. But if such a box scheme wants to help members and organise the distribution from the farmer of the vegetable boxes then they might be found to run a retail activity. We contacted the National Tax Authority for clarification if an escrow agreement is regarded as business activity. We got a positive and supporting answer.

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