The Netherlands want to maintain the positive tax climate for foreign companies at all costs

Many parties acknowledge that the tax climate at debate has been put under pressure in the last years. However, in the 90s this strategy was consciously chosen. The Netherlands wanted these companies since they provide tax revenues and jobs. If other countries want to change this, the Netherlands will not make haste.

Simply competition

Add to this that the overall feelling is that other countries not so much want the tax climate to be fairer for European citizens, but simply are after the headquarters that are based here. However, there seems to be some movement in the positioning in points of view. Developing countries hardly can collect any tax revenues,. Even parties that were advocates now see that something has to change. But that does not mean that the Netherlands will stop singlehandedly. Change of tax rules should be done at a European level.

Jan van de Streek (professor Tax laws) thinks that the debate is shifting. Luckily the Netherlands, as EU-chairman, have taken the lead in preventing Multinationals from tax evasion. Van de Streek thinks that something has to change in the way of decision making in Europe. A change in tax rules requires 28 EU members. That could be simplified to prevent one country from blocking the change. The solution could be that decisions are no longer made by unanimity but by majority. However this is a sensitive issue in Europe.

Share your knowledge

Leave a comment