Daily Tax Report: International

Netherlands Targets Tax-Avoiding ‘Hybrid’ Structures

July 2, 2019, 8:05 PM

The Netherlands government introduced legislation aimed at stopping “hybrid mismatches,” structures companies use to avoid tax by exploiting the differences between two countries’ tax rules.

  • The cabinet introduced a bill July 2 that would bring the country’s rules on hybrid mismatches into line with the EU’s ATAD2, or Anti-Tax Avoidance Directive, the government said in a statement. All EU member states must comply with such directives.
  • U.S. companies have used hybrid structures like one known as the CV/BV structure to postpone taxation of worldwide profits, the statement said.
  • Most of the measures in the legislation would come into effect...
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