peer reviews : The Netherlands 2011 ; combined: phase 1 + phase 2 ; October 2011

142 Pages·2011·1.5 MB·English

by  OECD

Global Forum on Transparency and Exchange of Information GLOBAL FORUM ON TRANSPARENCY AND EXCHANGE
for Tax Purposes
OF INFORMATION FOR TAX PURPOSES
PEER REVIEWS, COMBINED: PHASE 1 + PHASE 2
THE NETHERLANDS
Peer Review Report
The Global Forum on Transparency and Exchange of Information for Tax Purposes is the
multilateral framework within which work in the area of tax transparency and exchange of
information is carried out by over 100 jurisdictions which participate in the work of the Global Combined: Phase 1 + Phase 2
Forum on an equal footing.
The Global Forum is charged with in-depth monitoring and peer review of the implementation
of the standards of transparency and exchange of information for tax purposes. These
standards are primarily refl ected in the 2002 OECD Model Agreement on Exchange of
Information on Tax Matters and its commentary, and in Article 26 of the OECD Model Tax
Convention on Income and on Capital and its commentary as updated in 2004, which has THE NETHERLANDS
been incorporated in the UN Model Tax Convention.
The standards provide for international exchange on request of foreseeably relevant
information for the administration or enforcement of the domestic tax laws of a requesting
party. “Fishing expeditions” are not authorised, but all foreseeably relevant information must
be provided, including bank information and information held by fi duciaries, regardless of the
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existence of a domestic tax interest or the application of a dual criminality standard. ee
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All members of the Global Forum, as well as jurisdictions identifi ed by the Global Forum as e
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relevant to its work, are being reviewed. This process is undertaken in two phases. Phase 1 ie
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reviews assess the quality of a jurisdiction’s legal and regulatory framework for the exchange R
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of information, while Phase 2 reviews look at the practical implementation of that framework. p
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Some Global Forum members are undergoing combined – Phase 1 plus Phase 2 – reviews. rt C
The ultimate goal is to help jurisdictions to effectively implement the international standards o
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of transparency and exchange of information for tax purposes. b
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All review reports are published once approved by the Global Forum and they thus represent d
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agreed Global Forum reports. h
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For more information on the work of the Global Forum on Transparency and Exchange of 1
Information for Tax Purposes, and for copies of the published review reports, please visit + P
www.oecd.org/tax/transparency and www.eoi-tax.org. ha
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Please cite this publication as: H
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OECD (2011), Global Forum on Transparency and Exchange of Information for Tax Purposes Peer E
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Reviews: The Netherlands 2011: Combined: Phase 1 + Phase 2, OECD Publishing. H
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http://dx.doi.org/10.1787/9789264126732-en R
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This work is published on the OECD iLibrary, which gathers all OECD books, periodicals and statistical N
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databases. Visit www.oecd-ilibrary.org, and do not hesitate to contact us for more information. S
ISBN 978-92-64-12672-5 -:HSTCQE=VW[\WZ:
23 2011 61 1 P

Global Forum
on Transparency
and Exchange
of Information for Tax
Purposes Peer Reviews:
The Netherlands 2011
COMBINED: PHASE 1 + PHASE 2
October 2011
(reflecting the legal and regulatory framework
as at July 2011)
002_16x23_Netherlands.fm Page 1 Tuesday, September 27, 2011 2:16 PM
This work is published on the responsibility of the Secretary-General of the OECD.
The opinions expressed and arguments employed herein do not necessarily reflect
the official views of the OECD or of the governments of its member countries or
those of the Global Forum on Transparency and Exchange of Information for Tax
Purposes.
This document and any map included herein are without prejudice to the status of
or sovereignty over any territory, to the delimitation of international frontiers and
boundaries and to the name of any territory, city or area.
Please cite this publication as:
OECD (2011), Global Forum on Transparency and Exchange of Information for Tax Purposes Peer
Reviews: The Netherlands 2011: Combined: Phase 1 + Phase 2:Legal and Regulatory Framework,
Global Forum on Transparency and Exchange of Information for Tax Purposes: Peer Reviews,
OECD Publishing.
http://dx.doi.org/10.1787/9789264126732-en
ISBN 978-92-64-12672-5 (print)
ISBN 978-92-64-12673-2 (PDF)
Series: Global Forum on Transparency and Exchange of Information for Tax Purposes: Peer Reviews
ISSN 2219-4681 (print)
ISSN 2219-469X (online)
Corrigenda to OECD publications may be found on line at: www.oecd.org/publishing/corrigenda.
© OECD 2011
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3
TABLE OF CONTENTS –
Table of Contents
About the Global Forum. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Executive Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Information and methodology used for the peer review of the Netherlands. . . . . 9
Overview of the Netherlands. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Recent developments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17
Compliance with the Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
A. Availability of information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
A.1.Ownership and identity information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
A.2.Accounting records . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
A.3.Banking information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
B. Access to information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
B.1.Competent Authority’s ability to obtain and provide information. . . . . . . . 68
B.2.Notification requirements and rights and safeguards. . . . . . . . . . . . . . . . . . 81
C. Exchanging information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87
Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87
C.1.Exchange-of-information mechanisms. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89
C.2.Exchange-of-information mechanisms with all relevant partners. . . . . . . 106
C.4.Rights and safeguards of taxpayers and third parties. . . . . . . . . . . . . . . . . .111
C.5.Timeliness of responses to requests for information . . . . . . . . . . . . . . . . . .112
PEER REVIEW REPORT – COMBINED PHASE1 AND PHASE 2 REPORT – THE NETHERLANDS © OECD 2011
4
– TABLE OF CONTENTS
Summary of Determinations and Factors UnderlyingRecommendations. . . .119
Annex 1: Jurisdiction’s Response to the Review Report . . . . . . . . . . . . . . . . . 125
Annex 2: List of all Exchange-of-Information Mechanisms inForce. . . . . . . 126
Annex 3: List of all Laws, Regulations andOtherRelevantMaterial . . . . . . .133
Annex 4: People Interviewed During On-Site Visit . . . . . . . . . . . . . . . . . . . . . 136
PEER REVIEW REPORT – COMBINED PHASE1 AND PHASE 2 REPORT – THE NETHERLANDS © OECD 2011
5
ABOUT THE GLOBAL FORUM –
About the Global Forum
The Global Forum on Transparency and Exchange of Information for Tax
Purposes is the multilateral framework within which work in the area of tax
transparency and exchange of information is carried out by over 100 jurisdic-
tions which participate in the Global Forum on an equal footing.
The Global Forum is charged with in-depth monitoring and peer review
of the implementation of the international standards of transparency and
exchange of information for tax purposes. These standards are primarily
reflected in the 2002 OECD Model Agreement on Exchange of Information
on Tax Matters and its commentary, and in Article 26 of the OECD Model
Tax Convention on Income and on Capital and its commentary as updated in
2004, which has been incorporated in the UNModel Tax Convention.
The standards provide for international exchange on request of foresee-
ably relevant information for the administration or enforcement of the domes-
tic tax laws of a requesting party.Fishing expeditions are not authorised but
all foreseeably relevant information must be provided, including bank infor-
mation and information held by fiduciaries, regardless of the existence of a
domestic tax interest or the application of a dual criminality standard.
All members of the Global Forum, as well as jurisdictions identified by
the Global Forum as relevant to its work, are being reviewed.This process is
undertaken in two phases. Phase1 reviews assess the quality of jurisdictions’
legal and regulatory framework for the exchange of information, while Phase2
reviews look at the practical implementation of that framework.Some Global
Forum members are undergoing combined – Phase1 plus Phase2 – reviews.
The Global Forum has also put in place a process for supplementary reports
to follow-up on recommendations, as well as for the ongoing monitoring of
jurisdictions following the conclusion of a review.The ultimate goal is to help
jurisdictions to effectively implement the international standards of transpar-
ency and exchange of information for tax purposes.
All review reports are published once approved by the Global Forum and
they thus represent agreed Global Forum reports. For more information on
the work of the Global Forum on Transparency and Exchange of Information
for Tax Purposes, and for copies of the published review reports, please refer
to www.oecd.org/tax/transparency.
PEER REVIEW REPORT – COMBINED PHASE1 AND PHASE 2 REPORT – THE NETHERLANDS © OECD 2011

7
EXECUTIVE SUMMARY –
Executive Summary
1. This report summarises the legal and regulatory framework for transpar-
ency and exchange of information in the Netherlands as well as practical imple-
mentation of that framework.The international standard which is set out in the
Global Forum’s Terms of Reference to Monitor and Review Progress Towards
Transparency and Exchange of Information, is concerned with the availability
of relevant information within a jurisdiction, the competent authority’s ability to
gain timely access to that information, and in turn, whether that information can
be effectively exchanged with its exchange of information partners.
2. The Netherlands1 has a relatively small domestic and large foreign
market, and has thus historically focussed on removing obstacles to the
international flow of goods, capital and services. Starting with its first
agreement that provided for sharing of information with Belgium in 1845,
the Netherlands now has an extensive network of 86 taxation treaties, cover-
ing 90 jurisdictions, and 28 taxation information exchange agreements, the
majority of which provide for international exchange of information for tax
purposes in line with the international standard.In addition, the Netherlands
is able to exchange information with other European Member States under
various EU mechanisms that provide for exchange of information on auto-
matic and spontaneous bases in addition to information exchange on request.
3. The 22 agreements signed by the Netherlands Antilles are almost all
in line with the international standard and continue to apply to the Caribbean
part of the Netherlands. Under the BES Taxation Act, the Netherlands will
provide information to its treaty partners in respect of these islands also.
There has not yet been any international exchange of information in tax mat-
ters concerning the Caribbean part of the Netherlands and thus it is too early
to determine the effectiveness of this system in practice.The Global Forum
will further consider practical aspects of the exchange of information relating
1. This review relates to the Netherlands and its three special municipalities in the
Caribbean (Bonnaire, Sint Eustatius, and Saba). The other countries which are
members of the Kingdom of the Netherlands (Aruba, Curaçao and Sint Maarten)
are independent members of the Global Forum and are reviewed separately.
PEER REVIEW REPORT – COMBINED PHASE1 AND PHASE 2 REPORT – THE NETHERLANDS © OECD 2011
8
– EXECUTIVE SUMMARY
to the Caribbean Netherlands in detail in a targeted Phase 2 review, to be
scheduled for the first half of 2014.
4. The legal and regulatory environment ensures that information on the
owners of various domestic and foreign entities and arrangements operating
in the Netherlands and Caribbean Netherlands is available to its competent
authority. However, some concerns remain about the completeness of infor-
mation on ownership of limited partnerships and foundations.In addition, the
Netherlands and the Caribbean Netherlands allow for the issuance of bearer
shares by public limited liability companies, but there are insufficient mecha-
nisms in place to allow the identification of the owners of such shares.
5. The Netherlands’ tax and commercial legislation contain provisions
ensuring the keeping of full accounting information by all relevant entities
for at least seven years. Underlying documents must also be maintained for
tax purposes.Information relating to transactions and accounts held by finan-
cial institutions is available to the competent authority.
6. In the Netherlands, the competent authority has direct access to infor-
mation available in the databases of the Chamber of Commerce and the tax
administration.Tax inspectors in each region assist the competent authority by
obtaining information from tax files and by gathering information from taxpay-
ers or third parties, who are sufficiently empowered to get this information.
7. The authorities must notify the person from whom the information
originates prior to responding to the requesting competent authority.If there
is a compelling reason to do so, the information is provided to the requesting
authority prior to the notification to the party concerned. Persons notified
have the right to object to the provision of information and if such objections
are rejected by the competent authority they can appeal and request injunc-
tions against providing the information.This notification and appeal process
can be lengthy.
8. In September 2009 the Netherlands established a new competent
authority in the form of a Central Liaison Office (CLO), based in Almelo,
which exclusively deals with the administrative aspects of exchange of infor-
mation.The CLO is well resourced with experienced staff and are supported
by the tax administration, in particular by the network of Regional Liaison
Offices in the 13 tax administrative regions of the Netherlands.The CLO has
recently begun to systematically provide status updates to foreign partners
when requests are not responded to within 90days.
9. Notwithstanding the need to strengthen some areas of the Netherlands’
system relating to exchange of information, all 20 of the Netherlands peers that
provided detailed comments to assist this review indicated that the Netherlands
is a very important and valued partner exchanging a significant amount of
information in tax matters.
PEER REVIEW REPORT – COMBINED PHASE1 AND PHASE 2 REPORT – THE NETHERLANDS © OECD 2011