The Dutch Supreme Court has recently requested a preliminary ruling from the Court of Justice of the European Union on whether the Dutch anti-base erosion rule is a violation of EU law.
The deduction of interest expenses on related party debt may be denied under the Dutch anti-base erosion rule if such debt is used for specific tainted transactions, including the acquisition of an entity that is or becomes a related party.
Dutch Taxand member firm, Taxand Netherlands, provides a detailed overview of the likely implications of the preliminary ruling.
Read the full article here.