Tax Advisers - Deloitte

The Netherlands
The rapid changes in both the law and the general attitude to financial and tax fraud
have had the effect of inclining tax and prosecuting officers to apply current standards
to actions and behaviour dating back five to six years, at which time they were often
considered more acceptable than they are today.
The Dutch Ministry of Finance has taken the practical step of initiating discussions
with the largest Dutch-based multinationals in an attempt to persuade them to
subscribe to an undertaking on compliance. In accordance with the undertaking, these
taxpayers promise to file annual tax returns within the shortest possible time frame,
and to disclose all relevant tax risks. In return, the tax authorities undertake to deal
with these returns within a year, and to address all requests for prior approval,
cooperation, etc, quickly and in a businesslike manner. The Ministry of Finance is
currently considering substantially extending the group of eligible participants.
Defensible positions
The Dutch Supreme Court has ruled that, where a taxpayer has a defensible position,
penalties cannot be levied, nor can criminal intent be concluded. Structures and
positions can be considered defensible if they meet the following requirements:
• The structure is properly implemented.
• The substance of the structure and supporting documentation should accord with
the intention of the structure.
• The position should be carefully researched and should have a solid basis in case
law and/or literature.
Last but not least, tax planning calls for a balanced approach to filing, disclosure and
prior consultation with the tax authorities.
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