Dutch Guidance Notes On Intergovernmental Implementation Of FATCA

By Legal, Tax

In January, the Dutch Minister of Finance published guidance notes in relation with the intergovernmental agreement (“IGA”) concluded between the Netherlands and the United States.

The IGA facilitates the intergovernmental implementation of FATCA, aimed to combat tax evasion by U.S. persons holding assets through offshore entities and accounts.

The guidance notes provide for technical clarification of certain aspects of the concluded IGA.

OECD Publishes Various Discussion Drafts

By Legal, Tax

In between 16 and 19 December the OECD published the following public discussion drafts on specific issues under these action plans:

Action 4:              Limitations on interest deductions
Action 8-10:        Transfer pricing for risk re-characterization and special measures
Action 10:            Profit split method for transfer pricing in the context of global value chains
Action 10:            Transfer pricing for commodity transactions
Action 14:            Improving dispute resolutions

EU Court of Justice Ruled Dutch Fiscal Unity Regime In Contravention

By Legal, Tax

On the 12 June 2014, the European Court of Justice ruled that the Dutch fiscal unity regime (treating multiple group companies as one single taxpayer), contravenes to the EU principle of Freedom of Establishment. In essence the infringement was caused as the Dutch fiscal unity regime does not allow:

– A fiscal unity between Dutch sister companies, while being held (in)directly by a EU resident parent company;
– A fiscal unity between a Dutch parent company and a Dutch second-tier subsidiary, while the second-tier subsidiary is held through a EU resident (first-tier) subsidiary.

The European Court of Justice reached this decision while answering prejudicial questions raised by the Amsterdam High Court in three separate cases.