Tax breaks for foreign firms to be cut

Junior finance minister Jan Kees de Jager is planning to raise an extra €2bn for the treasury by curbing the tax breaks for foreign firms in the Netherlands, the Financieele Dagblad reports on Monday.

The measures will particularly hit private equity firms which saddle the companies they take over with debt and then benefit from generous rebates, the paper said.
‘This is really going to hurt people profiting from Bosal,’ De Jager told the paper. He was referring to a 2003 court case in which the European court ruled that parent companies which invest in a foreign subsidiary cannot be treated less favourably than one that invests in a domestic subsidiary.
The measures are contained in a discussion document which has been sent to MPs.

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