Introduction of Deutsche Shell Legislation in the Netherlands

Journal
Author
Kok, R.
Country
Netherlands
Published Date
Issue
Finance and Capital Markets (formerly Derivatives & Financial Instruments) 2011 (Volume 13), No. 5
FormatPDF
EUR
45
| USD
50 (VAT excl.)

It is being argued that based on the Deutsche Shell ruling, Member States (and in the context of this article, specifically the Netherlands) are not allowed to exempt foreign exchange losses on EU participations from inclusion in taxable profit. This would result in the asymmetrical situation where foreign exchange losses on a EU participation would be tax deductible, while foreign exchange gains on a EU participation would be tax exempt. This article considers proposed legislation in the Netherlands that would counter this asymmetry.