Tax office ordered to publish tax rulings

The tax office has been ordered to make public some 20 advance tax agreements made with multinationals and industrial sectors, the Telegraaf reports on Monday.

The paper says tax news service Fiscaal up to Date has used freedom of information legislation to force the tax office to publish the deals.
One ruling covering the sex industry states that prostitutes can claim 20% of their income as tax-free expenses – an agreement which breaks the law, the paper says.
Advance tax rulings
The company hopes forcing the tax office to reveal details of other advance tax rulings made with major companies may uncover other illegal deals.
The tax office wants to seal 1,500 covenants to cover sectors such as housing corporations, car dealers, staffing agencies and churches. By agreeing on tax payments in advance, companies have less red tape to deal with and tax inspectors only intervene when they suspect the covenant is being broken.
The Dutch practise of agreeing tax rulings in advance is a major draw to foreign firms.

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