Holland to close pension tax loophole

The Netherlands is to take urgent steps to close a loophole allowing pensioners to cut their tax bills by moving to foreign countries, the Financieele Dagblad reports.

Last week the high court ruled that the tax office cannot levy an extra tax charge on private pensions if the fund owner moves abroad.
Dutch private pensions are built up tax free but the pay-outs are taxable. But by moving their pension to a low tax country, pensioners can reduce their tax liabilities.
Tax minister Jan Kees de Jager on Friday announced immediate plans to legitimise the extra levy, saying that without it, the treasury may miss out on billions of euros.
Deloitte tax specialist Peter Kavelaars told the FD the measure was unacceptable. ‘You canot bring in retroactive legislation when you don’t even know the contents of the legislation.
‘De Jager has not explained why such an emergency step is necessary and this ruling has been more or less expected for the past 18 months,’ he said.

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