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
The decision of the US Court of Appeals has raised questions about how issuers should present their disclosures on conflict minerals under Exchange Act Rule 13p-1 and Form SD.
An interesting judgment was delivered by the Honourable J Majiki on 19 November 2013 in the Eastern Cape High Court, Port Elizabeth.
Analysis from The Lawyer
As international firms question their future in these small, closely linked markets, local lawyers too are eyeing the business environment with caution
Beyond the headline infrastructure projects, UK construction work is still recovering from the clobbering it took during the slump