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.
The Supreme Court based its conclusion on a formal interpretation of the term ‘interest’ in the Legal Transactions Taxation Act and thus ruled differently to the Court of Appeals ‘s-Hertogenbosch, whi ...
The judgment rendered by the Court of Appeals ‘s-Hertogenbosch could also be important in practice with regard to shares in real estate legal entities that are acquired by investment funds without leg ...
On January 31, 2020, the OECD hosted a webcast that provided an update on the work relating to the tax challenges arising from the digitalization of the economy, as well as a number of recent and upco ...
This is a favorable outcome for the real estate market. The acquisition of (an apartment right in) a converted building intended for residential use is more likely to be subject to 2% rather than 6% r ...