Source: NTFR Artikelen 2015/6
Author: Bauco Suvaal

In an article that the author wrote in 2011, he, along with others, expressed the hope that the updating of the Decree, dated May 6, 2008, on the application of Section 20a of the Corporate Income Tax Act 1969 would mean that the provision against − to put it briefly − the trade in loss-making entities, would finally become a reality. The major changes made to Section 20a(1), which took effect as of 2011, were the reason for this expression of hope. Although there have been any number of policy statements in other areas of tax since then, the 20a Decree from 2008 appeared to have disappeared from sight.

On March 11, 2015 the 20a Decree (dated February 25, 2015) finally received the hoped for facelift. However, once the initial euphoria had subsided, it appeared that, apart from a few editorial changes, only one part had been deleted, a ‘new’ part had been included and an approval/concession had been replaced. The part that had (wrongly) been completely deleted concerned the approval for a specific expansion of an interest. The new part (that does not really contain anything new) concerns the situation of consecutive changes to the body of shareholders. The replacement approval concerns the revaluation opportunities available under Section 20a(12).

In this article, the author not only addresses the changes that have been made to the 20a Decree, but also looks at the approvals/concessions and explanations that, in his opinion, should have or could have been included. He also discusses some issues that would not have looked out of place in the Decree.