Judge: employer is not allowed to just provide iPad free of charge

Companies cannot simply provide employees with an iPad tax-free, the judge has ruled. For the law, the iPad is not a means of communication, but a small computer, so there are stricter conditions attached to it.

the judge did decision in a case between an employer and the tax authorities. The company, which is not mentioned by name, had given approximately 650 permanent employees an iPad, in combination with mobile internet for a year. The tax authorities gave the company an additional tax assessment of approximately 325,000 euros: according to the institution, the iPads had to be charged as wages in kind. The company disagreed and protested.

An important question, according to the court, is whether an iPad should be classified as a means of communication, just like a mobile phone is, or as a computer. Communication tools can be provided tax-free according to the law if they are used for a significant part for business. A stricter policy applies to computers: they may only be given tax-free to employees if they are used ‘wholly or almost entirely’ for business purposes.

The court ruled that the iPad cannot be regarded as a mobile means of communication, but as a ‘small computer’. “Although communication is undoubtedly an essential part of using the iPad,” the court wrote, that does not mean that “this is the central role of the iPad”. Because of the many other possibilities that an iPad offers, such as surfing the Internet and playing games, the iPad is a ‘small computer that is also suitable for various forms of communication’. Another factor is that the iPad is less suitable for oral communication due to its large shape, and therefore cannot be compared with a telephone. That is why the stricter rules apply.

In this case, the company was unable to demonstrate sufficiently that the iPads were wholly or almost entirely intended for business use, so the company must pay the additional tax. It is not clear from the verdict where exactly the limit lies: there are also smaller tablets that have calling functionality. There are also devices that cannot be directly classified as a tablet or smartphone, such as the 5.5″ Galaxy Note 2 from Samsung. It can be seen as a telephone, but a stylus is also included with the device, so that the device can also be used as a phone. tablet can continue pulls the limit with an image diagonal of more than 7 inches: then it is a computer, according to the organization.