![Belangrijk arrest over fiscale duiding financieringsinstrument](/sites/default/files/styles/search_result/public/2024-05/glazen_dak_lucht.jpg)
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.
![Tax operation model](/sites/default/files/styles/search_result/public/2023-03/website-grote-banner-1980-x-550-px-compress-2_7.jpg)
Tax Transformation Strategy
To future-proof your tax function you want to ensure that you adapt to external changes in the tax landscape, such as global tax reform and the digital economy, and embrace the latest technologies so that you make the best use of your time and maximize insights into/value from data and processes to improve your overall operations.