07 June 2016 Dutch Court of Appeal rules fiscal unity between Dutch companies held by common non-EU parent allowed under nondiscrimination provision in tax treaty The Dutch Court of Appeal has ruled that Dutch subsidiaries held by a common Israeli parent company can form a fiscal unity (between the Dutch companies only) based on the non-discrimination provision in the Netherlands-Israel tax treaty though such fiscal unity is not allowed under current Dutch law. The scope of this decision may extend beyond Netherlands-Israeli situations, as the specific provision in the treaty is based on the Organisation for Economic Co-operation (OECD) model tax treaty and is included in a significant number of Dutch tax treaties. Although appeal before the Dutch Supreme Court is expected, taxpayers should consider safeguarding their rights by filing a fiscal unity request for the Dutch companies related through non-EU companies where this is of benefit. A Tax Alert prepared by EY's Global Tax Desk Network, and attached below, provides additional details. Document ID: 2016-0986 |
