Monday, October 31, 2016

Dutch Unlikely to Budge on Calls for Tougher Letterbox Rules

Talk like a pirate -- with a Dutch accent
The Dutch government is unlikely to take measures against the thousands of resident letterbox companies that shift profits through the Netherlands before next year’s parliamentary elections, despite lawmakers’ calls for tougher restrictions.

More stringent rules would make it harder for shell letterbox companies to qualify as Dutch tax residents, limiting their access to double taxation agreements and other tax benefits offered under Dutch law.

This style of tax planning has come under scrutiny from the European Commission, which is targeting the arrangements through legislative moves to prevent companies from using letter-box subsidiaries in countries solely to qualify for a softer tax regime and cut their bill.

However, ahead of parliamentary elections in March 2017, Dutch lawmakers have shown little appetite to make current requirements stricter, tax justice officials and academics in favor of the changes told Bloomberg BNA.  (more...)


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