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A look at the concept of beneficial ownership by reviewing case law of various countries is presented. Beneficial ownership has produced uncertainties on the economic aspects of the concept because of the absence of qualifying definition. The domestic treatment of beneficial ownership in Canada, France, Germany, and the Netherlands is also discussed.

A look at the European Court of Justice (ECJ) decision on the X Holding case is presented. The ECJ held that a Dutch rule, which allowed a Dutch parent company to form a 'single tax entity' with its 95% Dutch subsidiary but not with its 95% Belgian subsidiary, form a discrimination. However, ECJ justified the rule based on balanced allocation of tax jurisdiction.

The European Court of Justice (ECJ) and national courts have ruled on whether a taxpayer might make a claim based on the freedom of establishment and/or the free movements of capital. The issue has crucial importance in situations involving third countries. How the inconsistencies in ECJ's case law led to conflicting findings by various national courts is also discussed.

The Netherlands Supreme Court's decisions on the link between domestic concept of preservative assessments and concluded tax treaties are discussed. The BNB 2009/263 through 266 rulings found exit taxes under the treaties were not in accordance with good faith. The BNB 2009/263 through 266 rulings found exit tax on substantial share holdings is in line with good faith.

The revised rules regarding subsidiaries that qualify for the application of the participation exemption are examined. The changes which are applicable starting 2010, were designed to provide more clarity and make certain that the rules at issue are easier to apply. The rules which might look complex were simple to implement and the outcome should only be different in limited cases.

The compatibility of two Netherlands Corporate Income Tax Act provisions with European Commission law is discussed. The provisions enforced potential Netherlands tax liability on dividends issued to foreign corporate shareholders. The rules could represent restrictions on the freedom of establishment and on the free movement of capital.

European Commission's various tax proposals around Europe are discussed. An overview of the Commission's ruling on the Commission of the European Communities v. Kingdom of the Netherlands case which focuses on Netherlands' rules that provide withholding tax on dividends paid to certain European Economic Area residents is also presented.

The international financial reporting standards (IFRS) are being considered by the Netherlands Revenue for use in ascertaining the annual taxable profit. The most significant objection to this move is the vital role of fair value in the standards' valuations. The possible impacts of using the in Netherlands' tax accounting are examined.

The Netherlands' portfolio investment entity is exempt from corporate income tax, while its distributions are exempt from dividend withholding tax. It aims to allow tax-neutral collective investment. Focus on the taxation of this fund investment-facilitating tax regime and the requirements for the applicability of this regime are presented.

An examination of the interest deduction laws of the Netherlands, Germany, and the UK reveals that the German interest barriers appear to conflict with European Commission laws while those of the UK are too comprehensive as compared to the Netherlands rule. Options for the improvement of interest deduction laws in the Netherlands are presented.

The Dividend Withholding Tax Act of the Netherlands is still not fully European Commission compliant despite its many amendments and there also appears to be an inconsistency between withholding tax position of dividends paid to Netherland companies and those from other member states. European Court of Justice cases related to cross-border dividends are discussed.

Information about Orange European Smallcap Fund NVs' (OESF) case involving a refund for foreign withholding tax is presented. Under Netherlands law, collective investment vehicles are subject to a special tax regime. The European Court of Justice ruled that a European Union Member State may find it necessary via a tax treaty to treat dividends from various Member States differently.

The decision of Advocate General of Netherlands Supreme Court on tax treatment for resident sportsperson's basic salary, under Organization for Economic Co-operation and Development tax treaty, is discussed.

The tax consequences of thin capitalization rules, under corporate income tax law of Netherlands, are presented.

The latest updates on different tax related cases in France, Italy, Luxembourg and Netherlands are thoroughly analyzed.

The Netherlands State Secretary for finance issued two decrees to deal with the foreign entities, their classification and application. It is concluded that both decrees are major improvements in comparison with old policy and may help in international tax practice.

A protocol amending the income tax treaty between the Netherlands and the United States was signed on March 8, 2004 by the US Secretary of the Treasury, John W. Snow and the Netherlands Under-Minister of Finance, Joop Wijn. The protocol has to be approved in the Netherlands and the United States before coming into effect. The clauses in the protocol relating to the new arrangement for hybrid entities, the new limitation on benefits article and the new dividends article are discussed.

The Income Tax Act, Wet IB 2001 of Netherlands gives tax - incentives for the investments in culture, like performing arts and museums. The article questions the probable success of the act and suggests that other European countries should not follow the policy.

The differences in tax treatment of partnerships and issues arising in cross-border situations due to these differences are discussed. The characteristics of Netherlands and Spanish partnerships and their classification for domestic income tax purposes are analyzed.

Generally, in OECD-patterned treaties, fictitious income falls under the 'other income' provision for defined income, which does not use the terms 'paid' and 'derived'. The treaty characterization of fictitious income and the application to specific fictitious income under the Netherlands Tax Law are discussed.

The new Netherlands dividend-stripping provision, which denies the reduced dividend withholding tax rate or a tax exemption provided by a tax treaty if the taxpayer is not the beneficial owner of the dividends, is examined in respect of its application in the tax treaty context. The situations when a taxpayer should be entitled to tax treaty benefits are discussed.

In the June 2002 issue of European Taxation, a report on the Netherlands case law that is likely to have an impact on the Netherlands anti-base erosion legislation was presented. The basic principles of this anti-base erosion legislation are discussed.

In 1992 an obligation was introduced in Netherlands for emigrants to include in their taxable income amounts that were previously deducted from their taxable income in respect of life insurance premiums. The decision of the Netherlands Supreme Court, wherein the court found that the emigrants of Netherlands could recapture previously deducted life insurance premiums, is discussed.

The Netherlands Supreme Court allowed a deduction for interest paid in 1989 by a Netherlands firm on a loan granted by a related Irish international financial services company for the acquisition of another Netherlands company. The historical background of the case is discussed, together with future implications for the Netherlands and other EU members.

The special tax treatment of international performing artists is discussed. Examples are presented to illustrate the excessive taxation of international performing artists. The Netherlands and the United Kingdom are said to be good examples of how the taxation of international performing artists can be transformed into a system which is both fair and modern.

A controversial, landmark decision by the Netherlands Supreme Court is analyzed. The issue at hand was whether the Netherlands had lost the right to levy a tax on a dividend in a triangular situation in which a company incorporated in the Netherlands distributed dividends to a Belgian resident. The location of effective management of said company had been transferred to the Netherlands Antilles.

In the Netherlands, the Lower Court of 's-Hertogenbosch's decision on the issue of an individual shareholder of a Netherlands' based company who performs personal activities for the company should earn for wage tax purposes at least the 'usual salary' as defined under Article 12a of the Wage Tax Act. If the salary is not paid, the person is deemed to have received the 'usual salary.' The issue is whether this fiction can be applied to residents of countries with which Netherlands has a tax treaty.

The United Kingdom's Limited Liability Partnerships Act 2000 made available the limited liability partnership (LLP), which was primarily intended as a business entity. The legal and income taxation issues relevant to an LLP formed in the United Kingdom and utilized as an investment vehicle by a United States, Germany or Netherlands participator are discussed. Topics include the United Kingdom tax treatment of a partnership and the characterization of the United Kingdom LLP by each of the United States, Germany, and the Netherlands, and the United Kingdom LLP under international tax law.

In Netherlands many cases have been based on European Convention on Human Rights (ECHR), as a result of the constitutional ban on challenging laws on the basis of their compatibility with the Constitution. It is evident that the Supreme Court will apply the ECHR to taxation matters, though a contrary view also exists.

The special tax regime for expatriates that has operated in the Netherlands for some time has now been integrated into the country's tax legislation. The 30% allowance regulation covers employees moving out of the Netherlands to work in some other countries and to employees entering the Netherlands to work.

Issues concerning the international implications of the introduction of the 2001 Income Tax Act in the Netherlands are discussed, including case studies.

Recent mutual assistance instruments used by tax authorities in Canada and the Netherlands with regard to exchange of information, are examined.

Issues concerning Dutch income tax, net wealth tax, wages tax and corporate income tax which could be contrary to the four freedoms of the EC Treaty and its general freedoms are considered. Attention is also given to recent court cases dealing with the freedoms of the EC Treaty.

The Lower Court of Amsterdam has issued a ruling on the application of the 'exit tax provision' in Dutch tax legislation. The court argued that Article 16 of the Individual Income Tax Act 1964, which contains an exit tax provision, can only be applied if the taxpayer stops generating profits from an enterprise that are taxable in the Netherlands. It seems that this ruling confirms that Article 16 cannot be applied in the event of a 'partial emigration.'

It is important to consider the repercussions for corporate income tax in the Netherlands of the introduction of the euro. Within this, particular attention must be given to permanent establishments of Dutch concerns, cross-border loans and debts and the tax treatment of costs companies must make in relation to the introduction of the euro and the conversion of nominal share capital. A law dealing with the conversion of the levying of taxes in guilders into the levying of taxes in euros became effective on Jan 1, 1999. From Jan 1, 2002, all amounts expressed in guilders in the various tax laws will be converted into euros.

A case on several tax treaty issues linked to construction activities in a cross-border situation was recently decided by the Netherlands Supreme Court. The decision provides more insight into the definition of the term 'permanent establishment' in tax treaties in Article 5 of the OECD Model Tax Convention on Income and Capital. The issue concerned the salaries of employees resident in Germany, working no more than 183 days in the Netherlands, and whether they were subject to wage tax in the Netherlands.

Dutch civil law permits NV companies to buy back up to 10% of their shares. Companies cannot record these shares as assets on the balance sheet but they may have a presence in taxation records. However, tax implications are not clear, as there is no specific legislation governing share buy-backs. Dutch companies in the late 1990s are increasingly considering temporary share buy-backs as an investment option, so it is vital that the government should introduce legislation on the issue.

A report produced in 1996 which looked at The Netherlands' Model Tax Treaty was criticised by the Finance Committee for not covering issues such as tax treaties introduced after 1987, the effect of EC law on Netherlands tax treaties and why there is no treaty with Portugal. An expanded report was sent to parliament on 15 Apr 1998. This report discussed international developments which may affect the Netherlands tax policies and where the Netherlands stands on tax treaty negotiations. Having a lucid international tax policy will make international investors more feel more secure.

Taxation law for the Netherlands was laid down in the 1965 tax arrangement, known as Belastingregeling voor het Koninkrijik (BRK). Amendments were made in 1996, revising provision for anti-abuse law and the practise of correct imposition. The amendments are neither clear nor consistent, with parliamentary input unhelpful. Regulations covering capital gains tax and company tax need to be clarified and encompass a wider scope. The amendments may prove to be more divisive than anticipated.

A new tax treaty between Canada and Switzerland covers income and capital, and replaces the August 1976 tax treaty on income and capital. Changes include lower passive income withholding rates and lower Canadian branch profits tax. The significant deviations from the 1992 OECD Model are discussed. The tax treaty between Estonia and the Netherlands also covers income and capital and does not contain a branch profits tax provision.

Changes to the Tax Arrangement for the Kingdom of the Netherlands (BRK) were made in 1996 to counter the successful 'penshonado' regime. Negotiations started in January 1995, during which a new domestic tax regime for income from substantial shareholdings and for capital gains was designed. The Penshonado regime and its favorability for tax-payers resident in the Netherlands is discussed, and the extension of some elements of non-resident tax liability is detailed.

Amendments to the Tax Arrangement for the Kingdom of the Netherlands (BRK) have affected the way pensions and pension redemptions are taxed. The pre-1997 situation relating to the BRK and pension income is reviewed, including the Pension and Savings Funds Act, and recent tax changes. This is followed by a review of changes to the BRK 1997, transitional provisions, and practical consequences.

Amendments to the Tax Arrangement for the Kingdom of the Netherlands (BRK) aimed to stop abuse of tax law, with the introduction of anti-abuse legislation Article 35a and 35b. In particular, Article 35b(4) aims to prevent the use of a 'cash box' or holding construction. Conditions of Article 35b(4) and the consequences of applicability are discussed.

Amendments to the Netherlands Corporate Income Tax Act 1969 (Vpb) were introduced in December 1996, aimed at preventing erosion of the Netherlands tax base and reinforcing the tax infrastructure. The changes in the participation exemption are discussed, including detail on conditions for non-resident finance companies, conditions for tax-deductible devaluations and acquisition loans.

The financial structure of a business is usually limited by business and tax law, but most tax systems allow a deduction of interest paid on debt, although dividends are not usually tax deductible. Several countries are introducing special provisions for thinly capitalized companies, to challenge the taxable base erosion. The new Netherlands tax law relating to the disallowance of interest deductions is reviewed including the use of the abuse law.