The EU’s Dutch auction

The Netherlands has built up an industry out becoming the focus of international financing structures – promoting its own revenues to the detriment of EU “partners” like the UK. These Dutch practices are estimated to be costing the UK over £650 million per annum in lost corporation tax.

The Dutch B.V. company style and the Netherlands’ wide network of beneficial Double Taxation Treaties are the bedrock of their approach. It is supplemented by a mantra of “I’d rather have 2% of something than 100% of nothing” applied on a grand scale to taxation matters.

The sham processes of demonstrating that management control of the B.V. is being exercised from the Netherlands, the addition of the Swiss layer of the Dutch/Swiss sandwich, and allowing one Dutch bank in particular to dress up intercompany loans as bank loans and bypass UK controls on deduction of debt interest against tax: all these practices and more add up to an institutionalised and nationalised assault by the Netherlands on the UK’s tax base.

This is a prime example of the predatory tax practices by our “EU partners” that Brexit will put an end to.