The Resource X (Investment Co) v State Secretary for Finance : No 16/03321

X (Investment Co) v State Secretary for Finance : No 16/03321

Label
X (Investment Co) v State Secretary for Finance : No 16/03321
Title
X (Investment Co) v State Secretary for Finance : No 16/03321
Contributor
Subject
Language
eng
Summary
Judgment by the Dutch Supreme Court, judgment date 19 January 2018. The taxpayer was an investment company, which was established under Dutch law. Its sole shareholder was in the tax year 2004 resident in the Netherlands. By decision of the general meeting of shareholders of 9 July 2004, two individuals working for a limited resident in Singapore were appointed as managers of the taxpayer. The investment portfolio was managed by a Dutch resident individual. The taxpayer for the year 2004 and the period from the years 2005 to 2007 claimed to be resident in Singapore, which was rejected by the tax inspector. The Court began by observing that for the application of article 3(4) of the Dutch - Singapore treaty (1971), the meaning of the term: "management and control" is decisive. Due to the fact that this term is not defined in the treaty, the domestic interpretation becomes decisive based on article 2(2) of the treaty. However, due to the fact the term is also not defined under Dutch domestic law a meaning of the term must be found by means of the interpretation rules of article 31 of the UN Vienna Convention on the Law of Treaties (1969). The Court considered that the term "management and control" in its ordinary meaning must be understood as the place where the key decisions are taken with respect to the company's activities, where the ultimate responsibility for these activities rests and from where the instructions are given to the employees of the company. In this context it is irrelevant who performs the daily management of the business. The Court decided in favour of the State Secretary for Finance that the management and control of the taxpayer took place in the Netherlands. This means that the taxpayer was resident of the Netherlands and subject to tax in the Netherlands
Citation source
In: International tax law reports. - London. - Vol. 20 (2018), part 4 ; p. 469-486
Geographic coverage
  • Asia
  • European Union
  • Europe
Language note
English
http://library.link/vocab/relatedWorkOrContributorName
Baker, P
http://library.link/vocab/subjectName
  • case law
  • place of effective management
  • central management and control
  • dual residence
  • tax treaty
Label
X (Investment Co) v State Secretary for Finance : No 16/03321
Instantiates
Publication
Label
X (Investment Co) v State Secretary for Finance : No 16/03321
Publication

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