Netherlands Supreme Court Issues Judgment on Corporate Income Tax Interest Provision

The Dutch Supreme Court (Hoge Raad der Nederlanden) Jan. 16 issued a decision in Case No. 24/04619, on corporate income tax interest. The taxpayer, a resident company, challenged the 8 percent minimum interest rate applied to corporate income tax under Article 1(b) of the Tax and Recovery Interest Decree. The district court found that the rate should be reduced to 4 percent. On appeal, the Supreme Court held that: 1) although the government had authority to set differing rates, it lacked reasonable justification to selectively impose a higher rate solely on corporate taxpayers; 2) the tax assessment violated the principles ...