Dutch Supreme Court: Currency exchange gains on loans to which the anti-base erosion rules apply are tax exempt

February 2012

Overview

On February 24, 2012, the Dutch Supreme Court issued an important decision about the tax treatment of currency exchange gains on loans to which the anti-base erosion rules of article 10a Dutch Corporate Income Tax Act ("CITA") 1969 apply ("tainted loans"). The case concerned a Dutch company which realized a currency exchange gain on a tainted loan. The Supreme Court ruled that such currency exchange gains are not taxable.

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