A Dutch tax law perspective on the implementation of a preventive restructuring framework

Resource Information

The work A Dutch tax law perspective on the implementation of a preventive restructuring framework represents a distinct intellectual or artistic creation found in International Bureau of Fiscal Documentation. This resource is a combination of several types including: Work, Language Material, Continuing Resources.

Label

A Dutch tax law perspective on the implementation of a preventive restructuring framework

Creator

• Akyürek, T.P
• Bobeldijk, A.C.P
• Tol, D.T.C

Subject

• loss relief
• EU Directive
• waiver of a debt
• reorganization
• debt-equity swap
• insolvency

Language

eng

Summary

Through the proposed amendment of the EU Directive 2012/30/EU, the European Commission seeks the EU-wide implementation of a Preventive Restructuring Framework. The key objective is reduction of the likelihood of insolvency of generally viable businesses with (temporary) financial difficulties. Parallel to the Commission's efforts, the Dutch legislator published a detailed draft bill regulating the sanctioning of pre-insolvency composition. In the EU proposal and the Netherlands' draft legislation, relevant tax implications are not addressed. This may cause uncertainty and incentives for parties involved that interfere with the objective of a pre-insolvency composition. This article examines the Dutch tax aspects - for the debtor and involved creditors and shareholders - of common discharge and restructuring solutions in a binding restructuring plan. With every subject, general tax aspects are identified that may be relevant for other jurisdictions as well. It shows that a pre-insolvency composition may have important tax implications and that in some cases creditors and shareholders could even prefer bankruptcy over restructuring. The authors are of the opinion that the Dutch scheme needs further clarification and believe it even requires specific tax regulation. The authors recommend other EU Member States to assess the national tax elements of a binding pre-insolvency composition upon the implementation of the Preventive Restructuring Framework

Citation source

In: Intertax. - Alphen aan den Rijn. - Vol. 46 (2018), no. 8/9 ; p. 699-708

Geographic coverage

• European Union
• Europe

Language note

English