DutchNews.nl,
Saturday 31 August 2013
 |
| (ANP) |
The
Netherlands is to update its tax treaties with 23 poor countries to include
provisions to stop the system being abused, foreign trade minister Lilian
Ploumen and junior tax minister Frans Weekers announced on Friday.
The move
follows several reports showing that developing countries are missing out of
millions of euros in tax income because of tax avoidance treaties with the
Netherlands.
For
example, a report in June by multinational research institute Sono said ‘28
[poor] countries together lose €771m on dividend and interest tax income alone
every year,’ because of Dutch tax treaties.
The
Netherlands has tax treaties with 90 countries. 'By making use of loopholes in
tax treaties... companies can avoid paying tax,' the ministerial briefing said.
'This means poor countries miss out on tax revenue, funds they clearly need to
pay for instrastructure and education.'
Worldwide
Weekers
said the Netherlands alone cannot stop this happening and the issue needs to be
tackled at a global level, following consultations with the OECD, G20 and EU.
In
particular, the Netherlands plans to renegotiate a treaty with Zambia, which
dates from 1977 and is 'outdated', the briefing said.
The most
significant measure planned by the cabinet is to ensure letter box companies
are more substantive and transparent, the Financieele Dagblad said.
They will
need to have their own assets, a bank account, an accountant and the majority
of the management board should live in the Netherlands. The company must also
carry out actual economic activity.
The cabinet
hopes these measures will head off criticism about shell companies locating in
the Netherlands purely to take advantage of tax treaties.
Press release (English)
Earlier stories
- The Netherlands is not a tax haven, says minister
- Dutch tax treaties cost developing lands €700m, but earn us €3bn
- Tax office raises Portuguese energy firm's Dutch tax bill after protests
- OECD adds fuel to debate over NL as a tax haven
- MPs call for action on tax havens, plan should be ready by the summer
- Shell and state bank ABN Amro are masters at tax avoidance
- Research into letterbox companies is biased, say critics
- Multinationals and French state companies use Dutch tax deals
- Tax deals for letter box firms under fire, MPs demand change
- Starbucks under fire in Britain over Dutch tax deal
- EU wants an end to letterbox companies
- Letterbox companies largely exempt from tougher rules
- The Netherlands is a popular tax haven for FTSE 100 firms
- Holland no longer a US tax haven
- More tax levied over tax haven income
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| Offshore Secrets |
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