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130 • Fifty Shades of Tax Dodging html 833. Ibid. 834. KPMG. (2015). Luxembourg tax treaty network. Updated January 2015, Accessed 18 September 2015: http://www.kpmg.com/lu/en/services/ tax/tax-tools-and-resources/pages/luxembourg-tax-treaty-network. aspx 835. Out of the more than 20 treaties that have come into force in 2015 or are pending. Ibid. & Le Gouvernement du Grand-Duché de Luxembourg. (2015). Conventions en vigeur. Last updated 24 March 2015, Accessed 16 September 2015: http://www.impotsdirects.public.lu/ conventions/conv_vig/index.html 836. Laos is one of the countries that Luxembourg sends significant development assistance to, see: http://www.cooperation.lu/_dbfiles/ lacentrale_files/800/851/chap2_Asie-Laos-Activites-de-la-Cooperation-par-instrument.jpg. The reduced rate of 5 per cent in the new treaty applies “provided that the recipient is the beneficial owner which holds directly at least 10% of the capital of the company paying dividend”. In all other cases the rate applied is 10 per cent. See EY. (2014). Double tax treaty between Luxembourg and Laos, Tax Alert March 2014, Accessed 17 September 2015: http://www.ey.com/LU/en/ Services/Tax/Tax-alert_20140313_Double-Tax-Treaty-between-Luxembourg-and-Laos 837. The reduced rate of 7.5 per cent is available where “the beneficial owner of the dividends is a company (other than a partnership) which holds directly at least 25% of the capital of the company paying the dividends”. In other cases the rate applied is 10 per cent. See EY. (2014). Double tax treaty between Luxembourg and Sri Lanka, Tax Alert June 2014. Accessed 17 September 2015: http://www.ey.com/LU/en/ Services/Tax/Tax-alert_20140611_Double-Tax-Treaty-between-Luxembourg-and-Sri-Lanka 838. Giegold, Sven. (2015). Delegation visit to Luxembourg – Monday 18 May – Mission report, Special Committee on tax rulings and other measures similar in nature or effect (TAXE). Accessed 18 September 2015: http://www.sven-giegold.de/wp-content/uploads/2015/03/Mission-report-Lux.pdf 839. The treaties are with Taiwan and the Czech Republic. Tiberghien Luxembourg. (2014). Luxembourg double tax treaties with Czech Republic and Taiwan. Accessed 17 September 2015: http://www.tiberghien. com/media/Tax%20alert%20Luxembourg%20september%202014%20 -%202.pdf 840. OECD. (2010). Commentaries on the articles of the model tax convention. Accessed 17 September 2015: http://www.oecd.org/berlin/publikationen/43324465.pdf p.73, 151 & 171. 841. Giegold, Sven. (2015). Delegation visit to Luxembourg – Monday 18 May – Mission report, Special Committee on tax rulings and other measures similar in nature or effect (TAXE). Accessed 18 September 2015: http://www.sven-giegold.de/wp-content/uploads/2015/03/Mission-report-Lux.pdf 842. See FATF. (2010). Mutual Evaluation Report – Executive Summary – Anti-Money Laundering and Combating the Financing of Terrorism – Luxembourg. Published 19 February 2010, Accessed 16 September 2015: http://www.fatf-gafi.org/media/fatf/documents/reports/mer/ MER%20Luxembourg%20ES.pdf; OECD. (2013). Peer Review Report Phase 2 – Implementing of the Standard in Practice – Luxembourg, Global Forum on Transparency and Exchange of Information for Tax Purposes. Published November 2013, Reflecting regulatory framework as at May 2013: http://www.oecd-ilibrary.org/taxation/global-forum-on-transparency-and-exchange-of-information-for-tax-purposes-peer-reviews-luxembourg-2013_9789264202672-en;jsessionid=13nqsut0epwpm.x-oecd-live-03 843. FATF. (2014). 6th Follow-up report – Mutual evaluation of Luxembourg. Published February 2014. Accessed 17 September 2015: http:// www.fatf-gafi.org/media/fatf/documents/reports/mer/FUR-Luxembourg-2014.pdf p.7-8. 844. Luxembourger Wort. (2015). What effect the end of banking secrecy? Published 16 July 2015: http://www.wort.lu/en/business/finance-whateffect-the-end-of-banking-secrecy-55a7a1820c88b46a8ce5cc04 845. OECD. (2014). Automatic Exchange of Tax Information.29 October 2014. http://www.oecd.org/tax/exchange-of-tax-information/Automatic-Exchange-Financial-Account-Information-Brief.pdf 846. Luxembourger Wort. (2015). Global Forum agrees to Luxembourg transparency review. Published 12 January 2015, Accessed 16 September 2015: http://www.wort.lu/en/politics/request-for-additional-report-global-forum-agrees-to-luxembourg-transparency-review-54b3f76a0c88b46a8ce51451 847. The Guardian. (2015). Barclays in Luxembourg: £593m profits, £4m tax, report reveals. Published 3 March 2015, Accessed 20 September 2015 : http://www.theguardian.com/business/2015/mar/03/barclays-luxembourg-profits-tax-report 848. Giegold, Sven. (2015). Delegation visit to Luxembourg – Monday 18 May – Mission report, Special Committee on tax rulings and other measures similar in nature or effect (TAXE), Accessed 18 September 2015: http://www.sven-giegold.de/wp-content/uploads/2015/03/Mission-report-Lux.pdf 849. PwC. (2015). Luxembourg – New transfer pricing regime requires taxpayers to perform a review of their intercompany arrangements in 2015, Flash News. Published 25 June 2015, Accessed 20 September 2015: http://www.pwc.lu/en/transfer-pricing/docs/pwc-transfer-pricing-250615.pdf 850. Zucman, Gabriel. (2014). ‘Taxing across borders: Tracking personal wealth and corporate profits’, Journal of Economic Perspectives, Volume 28, No. 4, p.141. 851. Spear’s. (2015). Luxembourg’s new freeport unlikely to dispel tax haven image. Published 5 January 2015, Accessed 20 September 2015: http://www.spearswms.com/blog/luxembourgs-new-freeport-unlikely-to-dispel-tax-haven-image#.VgAxz8uZGpq 852. FATF. (2014). 6th Follow-up report – Mutual evaluation of Luxembourg. Published February 2014, p.48-49, Accessed 17 September 2015: http://www.fatf-gafi.org/media/fatf/documents/reports/mer/ FUR-Luxembourg-2014.pdf 853. Prat, Claude. (2015). The Luxembourg trust: Luxembourg private foundation. Published 18 June 2015: http://www.fiduciaire-lpg.lu/ en/publications/corporate-law/luxembourg-trust-luxembourg-private-foundation 854. See Eurodad. (2014). Hidden Profits – The EU’s role in supporting an unjust global tax system. Accessed 20 September 2015: http://eurodad.org/files/pdf/54819867f1726.pdf p.60; Chambre des Députés du Grand-Duché de Luxembourg. (2015). Rôle des affaires – 6594 – Projet de loi relative à la fondation patrimoniale et portant modification”. Accessed 20 September 2015: http://www.chd.lu/wps/portal/public/ RoleEtendu?action=doDocpaDetails&backto=/wps/portal/public&id=6595 855. Kossman, Christoph N. (2015). The Luxembourg patrimonial foundation: What’s new in Luxembourg?, Trust & Trustees, Vol.21, No.6, July 2015: http://www.sgggroup.com/sites/default/files/press/chk_article_june_2015.pdf p.679-680. 856. Wall Street Journal. (2015). EU seeks information on Luxembourg’s tax dealings with McDonald’s. Published 31 March 2015, Accessed 20 September 2015: http://www.wsj.com/articles/eu-seeks-information-on-luxembourgs-tax-dealings-with-mcdonalds-1427838077 857. Giegold, Sven. (2015). Delegation visit to Luxembourg – Monday 18 May – Mission report, Special Committee on tax rulings and other measures similar in nature or effect (TAXE). Accessed 18 September 2015: http://www.sven-giegold.de/wp-content/uploads/2015/03/Mission-report-Lux.pdf 858. European Commission. (2014). Aide d’Etat SA.38375 (2014 / C) (ex 2014 / NN) (ex 2014 / CP) – Luxembourg, C (2014) 3627. Final : http://ec.europa.eu/ competition/state_aid/cases/253203/253203_1582635_49_2. pdf 859. Bloomberg Business. (2014). Luxembourg abandons court fight with EU over tax-rulings. Published 18 December 2014, Accessed 20 September 2015: http://www.bloomberg.com/news/articles/2014-12-18/ luxembourg-abandons-court-fight-with-eu-over-tax-rulings
Fifty Shades of Tax Dodging • 131 860. It was voted down with 53 against and 5 in favour of the motion. Chambre des Députés du Grand-Duché de Luxembourg. (2015). Séance publique du 28/04/2015 – point d’ordre du jour no.11: Interpellaiton de Monsieur Justin Turpel sur ’LuxLeaks’”. Accessed 20 September 2015: http://visilux.chd.lu/ArchivePage/video/1475.html 861. Le Gouvernement du Grand-Duché de Luxembourg. (2015). Pierre Gramegna presented the priorities of the Luxembourg presidency before the ECON committee of the European Parliament. Published 15 July 2015, Accessed 21 September 2015: http://www.eu2015lu.eu/en/ actualites/articles-actualite/2015/07/pe-auditions-econ-gramegna/ index.html 862. Ibid. 863. Giegold, Sven. (2015). Delegation visit to Luxembourg – Monday 18 May – Mission report, Special Committee on tax rulings and other measures similar in nature or effect (TAXE). Accessed 18 September 2015: http://www.sven-giegold.de/wp-content/uploads/2015/03/Mission-report-Lux.pdf 864. See, for example, Wall Street Journal. (2015). Q&A with Luxembourg’s finance minister – Edited transcript of an interview with Pierre Gramegna in September. Accessed 20 September 2015: http://www.wsj.com/articles/q-a-with-luxembourgs-finance-minister-1415283072; The Globe and Mail. (2015). Low-tax Luxembourg supports reforms, Published 13 April 2015. Accessed 20 September 2015: http://www.theglobeandmail.com/report-on-business/international-business/european-business/low-tax-luxembourg-supports-reforms/article23898073/ 865. Tax Compact. (2015). About the Addis tax initiative. Accessed 20 September 2015: http://www.taxcompact.net/activities-events/addis-tax-initiative.html 866. Chambre des Députés du Grand-Duché de Luxembourg. (2015). Séance publique du 28/04/2015 – point d’ordre du jour no.11: Interpellation de Monsieur Justin Turpel sur ’LuxLeaks’”. Accessed 20 September 2015: http://visilux.chd.lu/ArchivePage/video/1475.html 867. See Financial Times. (2015). Luxembourg unshaken after tax regime overhaul. Published 22 April 2015, Accessed 19 September 2015: http://www.ft.com/intl/cms/s/0/037c8970-e80d-11e4-9960-00144feab7de.html#axzz3lzgAgMk9 868. Government of the Netherlands. (2015). Ploumen: paying tax is essential to promoting development. Published 25 August 2015, Accessed 29 August 2015: https://www.government.nl/topics/taxation-and-businesses/news/2014/08/25/ploumen-paying-tax-is-essential-to-promoting-development 869. Of the 12 subsidiaries, 11 have no employees in the Netherlands, whereas the twelth has three employees. See: SOMO. (2015). Fool’s Gold, available at http://www.somo.nl/publications-en/Publication_4177 p.45. 870. Ibid. p.50-55. 871. ActionAid. (2015). An Extractive Affair. available at: http://www. actionaid.org/sites/files/actionaid/malawi_tax_report_updated_table_16_june.pdf 872. See Nyasa Times. (2015). Paladin rejects Action Aid Malawi report as ‘fundamentally unsound. Published 21 June 2015: http://www. nyasatimes.com/2015/06/21/paladin-rejects-action-aid-malawi-report-as-fundamentally-unsound/ 873. Trouw, De winst van WE reist de halve wereld over. 6 November 2014, available at: http://www.trouw.nl/tr/nl/33101/Luxleaks/article/detail/3783689/2014/11/06/De-winst-van-WE-reist-de-halve-wereldover.dhtml 874. Zembla, Episode: Nederland belastingparadijs, het vervolg, aired 4 March 2015, available (in Dutch) at http://zembla.vara.nl/seizoenen/2015/afleveringen/11-03-2015 875. The Dutch Parliament has, on several occasions, discussed international taxation. See, for example, the parliamentary debate on 3 June 2015, where the Parliamentary Commission on Finance discussed the latest international developments and the Dutch position, tax avoidance in Greece through the Netherlands, and the European proposal for a common consolidated corporate tax base: http://www. tweedekamer.nl/kamerstukken/verslagen/detail?id=2015D24253&- did=2015D24253 876. Seeking Alpha. (2015). A Big Fat Eldorado Gold Greek Crisis. Published on Apirl 24 2015: http://seekingalpha.com/article/3099586-a-big-fat-eldorado-gold-greek-crisis 877. See for example a recent report by the Citizens for Tax Justice in the US that shows that the Netherlands is the most important offshore jurisdiction for the largest US companies (Fortune 500): Citizens for Tax Justice and U.S. PIRG. (2015). Offshore Shell Games 2015. The Use of Offshore Tax Havens by Fortune 500 Companies. Accessed 16 October 2015: http://ctj.org/pdf/offshoreshell2015.pdf 878. Government of the Netherlands. (2015). APA/ATR-beleid. Accessed 5 September 2015: https://www.rijksoverheid.nl/onderwerpen/belastingen-voor-ondernemers/inhoud/belastingen-internationale-ondernemers/apa-atr-beleid 879. The response of the Ministry of Finance to the questionnaire, received on 2 July 2015. 880. European Commission. (2014). EU Joint Transfer Pricing Forum: Statistics on APAs at the end of 2013: http://ec.europa.eu/taxation_customs/resources/documents/taxation/company_tax/transfer_pricing/ forum/final_apa_statistics_2013_en.pdf 881. MNE Tax. (2014). EU committee publishes letters from 13 nations on tax ruling practices. Published June 29 2015: http://mnetax.com/ eu-committee-publishes-letters-13-nations-tax-rulings-practices-9601 882. Tax rulings fall under the rules of confidentiality with taxpayers (art. 67 General Tax Act): http://wetten.overheid.nl/BWBR0002320/HoofdstukVIII/Afdeling6/Artikel67/geldigheidsdatum_07-07-2015 883. MNE Tax. (2015). Germany and Netherlands to exchange information on APAs and innovation box tax rulings. Published July 16 2015: http:// mnetax.com/germany-netherlands-exchange-information-private-tax-rulings-9943 884. See State Aid SA.38374 (2014/C) (ex 2014/NN) (ex 2014/CP) – Netherlands: http://ec.europa.eu/competition/state_aid/cases/253201/253201_1596706_60_2.pdf 885. Government of the Netherlands. (2014). Response to the European Commission’s opening decision regarding the formal investigation procedure concerning alleged state aid for Starbuck, Reference AFP/2014/1004. Dated 14 November 2014, Accessed 5 September 2015: https://www.government.nl/binaries/government/ documents/letters/2014/11/14/response-to-the-formal-investigation-procedure-concerning-alleged-state-aid-for-starbucks/ response-to-the-formal-investigation-procedure-concerning-alleged-state-aid-for-starbucks.pdf 886. This figure is the latest year of data available, which is 2013. See OECD. (2015). Implementing the latest international standards for compiling foreign direct investment statistics – How multinational enterprises channel investments through multiple countries. Published February 2015, Accessed 13 September 2015: http://www.oecd.org/daf/inv/ How-MNEs-channel-investments.pdf, p.4-5. 887. See the IMF CDIS database. Accessed August 14 2015: http:// data.imf.org/?sk=40313609-F037-48C1-84B1-E1F1CE54D- 6D5&sId=1390030109571 888. De Nederlandsche Bank. (2014). Groei BFI’s neemt af in 2013:http:// www.dnb.nl/nieuws/nieuwsoverzicht-en-archief/statistisch-nieuws-2014/dnb316987.jsp 889. European Commission. (2014). A study on R&D tax incentives, op. cit., p.53. 890. Ibid, p.69. 891. The statutory corporate income tax rate is 20 per cent for taxable income under €200,000 and 25 per cent for income above this threshold. PwC. (2015). Doing Business in the Netherlands 2015.http://www.pwc. nl/nl_NL/nl/assets/documents/pwc-doing-business-in-the-netherlands-2015.pdf p.18.
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