Corporate Tax

Short Reads - On 22 February 2018 the European Court of Justice ('ECJ') decided on two cases (C-398/16 and C-399/16), which are relevant for purposes of the 'per-element-approach' concerning the Dutch corporate income tax ('CIT') fiscal unity regime. To mitigate the (negative financial) impact of the decisions of the ECJ, the Dutch State Secretary announced last year that new legislation (with retroactive effect to 25 October 2017) will be introduced to amend the CIT fiscal unity regime.

Articles - Traditionally, Belgian tax law has been rather flexible in accepting the tax deductible character of interest due on leveraged financing structures. Recent court decisions, however, seem to challenge this principle.

Short Reads - In this Tax Alert we will address the anxiously awaited ruling of the European Court of Justice ("ECJ") on the joined cases C-398/16 and C-399/16. This judgement deals with the question whether EU law obliges the Netherlands to let taxpayers cherry pick benefits from the fiscal unity regime. We also mention the announcement of the Dutch Ministry of Finance to improve the rules for obtaining tax rulings in the Netherlands.

Inside Stibbe - On 12 January 2018, tax specialist Tirza Cramwinckel won a Meijers Award in the Tax Law research program for her article 'The disposition requirement in Tax Law' (het dispositievereiste in het belastingrecht, Weekblad Fiscaal Recht 2016/155).

Short Reads - On 25 April 2018 the European Commission proposed a new directive, amending the EU Directive 2017/1132 on company law. The proposed rules should support companies in moving from one EU country to another, i.e. cross-border mergers, divisions or conversions. However, the proposed rules for cross-border divisions and conversions will also require companies to get prior consent from a competent national authority before moving. Who will act as such authority is not clear yet.

Short Reads - Further to the policy plans published by the Dutch government in October 2017, the Dutch State Secretary of Finance published on February 23, 2018 a Letter (the "Letter") containing further details on certain aspects of the Dutch government's two way approach of enhancing the investment climate in the Netherlands.

Short Reads - Minister Koolmees van Sociale Zaken en Werkgelegenheid en staatssecretaris Snel van Financiën stuurden vrijdag 9 februari jl. de aangekondigde brief aan de Tweede Kamer met daarin een schets hoe het kabinet denkt te komen tot wetgeving die de Wet Deregulering Beoordeling Arbeidsrelaties (Wet DBA) zal vervangen.

Short Reads - On 15 December 2017 a ruling of the Dutch Supreme Court was published in which it is essentially ruled that the Dutch fiscal unity regime, by disallowing a fiscal unity between Dutch sister subsidiaries of a joint Israeli parent company, is not in breach of the non-discrimination clause as included in article 27(4) of the Dutch-Israel tax treaty (the "Treaty").