Uncollected dividend tax liability is part of taxable profits, court rules
In a recently released decision, the Dutch Supreme Court ruled in favor of the Dutch tax authorities and held that a company that was released from its dividend tax liability must add the amount of the liability to its taxable profits for the relevant year for corporate income tax purposes.
The case (No. 12/01957, LJN: BX9148, Mar. 8, 2013) concerned a Dutch limited liability company (BV). As of December 31, 2006, BV’s tax balance sheet showed a dividend tax liability amounting to €45,378. In an earlier year, BV had paid a dividend to its sole shareholder (an individual) from which, in its capacity as withholding agent, it had withheld the correct amount of Dutch dividend tax. The statute of limitation for the collection of the dividend withholding tax, which is levied on the dividend recipient, expired, so the Dutch tax authorities could not collect the amount of withholding tax from BV. Consequently, when issuing the 2006 Dutch corporate income tax assessment, the Dutch tax authorities held that BV should be considered released from its dividend tax liability and that the amount of the liability should be added to BV’s taxable profits.
If you are registered and logged in to the site, click on the link below to read the rest of the Hogan Lovells briefing. If not, please register or sign in with your details below.
News from Hogan Lovells
News from The Lawyer
Briefings from Hogan Lovells
An issue that comes up fairly regularly in redundancy selection is whether employers must consider all employees in similar roles or whether they can opt for a ‘pool of one’.
Hibbett v The Home Office is another case on the duty to make reasonable adjustments for an employee with a disability.
Analysis from The Lawyer
The Lawyer’s latest Top 50 litigation firms list shows that business for dispute specialists is roaring along while new in-depth detail reveals the winning strategies
The Russian legal market faces a new era as the government opens the door to greater business transparency, but not everything is open to scrutiny