Important judgment on tax classification of financial instrument

On May 17, 2024 the Dutch Supreme Court rendered an important judgment on the tax qualification of a financial instrument that was issued by a company established in France in 2007. It concerned the ‘obligation remboursable en actions’ (hereinafter: ORA). The question was whether the instrument had to be regarded as equity (capital) or debt capital (loan) for the purposes of the Corporate Income Tax Act 1969. Although the dispute focused on the question whether the costs related to the issue of the instrument were allocable to a Dutch permanent establishment of the French company, the Supreme Court judgment potentially has a much broader scope.

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News

Newsoverview (9)

Real estate fiscal investment institution to be abolished and changes to regimes for exempt investment institutions and mutual funds

December 15, 2022
The new rules primarily affect institutional investors, (listed) real estate funds and high-net-worth families.
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Court of Justice of the European Union rules that the UBO register must not be publicly accessible

November 23, 2022
The Minister of Finance has asked the Dutch Chamber of Commerce to temporarily stop providing information from the UBO register, effective as of November 22, 2022.
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Supreme Court: conversion of former wool factory into shopping mall results in ‘essentially a new building’ for VAT purposes

November 14, 2022
In its judgment, the Supreme Court reconfirmed that it is decisive whether or not the building has undergone structural construction alterations.
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Dutch Supreme Court persists with strict interpretation of actual use for VAT recovery right purposes

November 11, 2022
This case is not only relevant for financial institutions, but also for other taxpayers performing VAT-taxed and VAT-exempt services.
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Supreme Court answers questions about concept of ‘essentially a new building’ for VAT purposes

November 4, 2022
The preliminary ruling shows that, for ‘essentially a new building’ to have been created, there must have been alterations to the structural construction as a minimum.
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Lower House of Parliament passes bill on the Excessive Borrowing from Own Companies Act unchanged

September 14, 2022
Each holder of a substantial interest who has borrowed more than EUR 700,000 from their own company, will have to reconsider their position.
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Transfer of leased building by developer classified as transfer of going concern for VAT purposes despite earlier decision

May 31, 2022
The Arnhem-Leeuwarden Court of Appeals delivered two important rulings for the Dutch real estate practice on May 17, 2022.
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Group company not a fixed establishment for VAT purposes, but CJEU has left the door open

April 11, 2022
The CJEU provided more guidance on the circumstances in which the human and technical resources of an independent legal entity could result in a separate fixed establishment.
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NieuwsFlits WOZ en lokale belastingen – 1st quarter 2022

March 24, 2022
De Nieuwsbrief WOZ, lokale belastingen besteedt aandacht aan interessante ontwikkelingen en rechtspraak en verschijnt twee keer per jaar. Hierbij presenteren wij u de tweede editie van 2021  ...
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