Netherlands corporate tax haven in the spotlight

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Source: tax justice network 14 July 2017

“The status of the Netherlands as a corporate tax haven is coming under increasing scrutiny. A recent investigation by the newspaper NRC found that multinationals are able to negotiate tax deals with the Dutch tax authority which allows companies to reduce their tax bill to as low as 5%.”

“The article focuses on the recent case of an Israeli chemicals company, IRC. Letters between the company and their tax avoidance advisors, E&Y, show that IRC choose the Netherlands as the location for its headquarters over Switzerland, because the Dutch were offering a better tax deal.”

“A similar tax deal is also revealed in an extensive report released by Oxfam. More details about the report can be found on the tax justice network blog. The investigation by the charity focused on global household goods maker RB, and their corporate restructuring. This involved setting up a hub in the Netherlands. There the Dutch tax authorities were offering a deal to exclude 75% of their profits from tax.”

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