• The Netherlands -- Tax Developments in the Year 2003
  • January 31, 2004
  • Law Firm: Greenberg Traurig, P.A. - Miami Office
  • By far the most interesting event in 2003 for the Dutch tax practice was the ruling of the European Court of Justice (ECJ) in the case Bosal Holding BV v. State Secretary of Finance on 18 September 2003. In this ruling the ECJ held that the provision in the Dutch Corporate Income Tax Act (CITA), denying the deduction of interest expenses incurred by a Dutch corporate taxpayer in connection with its EU resident subsidiaries was incompatible with the principle of freedom of establishment as laid down in the EC Treaty.