Netherlands new measures to tackle Intra-Group Tax Evasion

The Dutch Government is actively combats international tax avoidance without altering the basic structure of the Dutch tax system.

Recently Frans Weekers, Dutch Financial State Secretary, has submitted an amendment to the Government’s Tax Plan. Amendment reflects an extension of existing legislation to provide that all companies, which are involved in the collection and payment of interest and royalties in the Netherlands, within a group context, must inform the Dutch Tax Administration of their existence and size in future otherwise they will face a fine.

Moreover, the requirements state that such businesses must be conducted with an amount of capital that is consistent with the functions and risks undertaken.

In addition, if an entity fails to meet the necessary criteria, the Dutch Tax Administration will be informing the Tax Administration immediately in treaty partner states.

Source: Tax News