Thousands of foreign investors to court because of dividend tax
While there has been debated in The Hague about controversial measure to abolish dividend tax, thousands of foreign investors have recently gone to court. They consider the distinction between foreign and Dutch investors as unfair. The foreign investors find that they are discriminated. In an interview with Peter Kavelaars, Professor of tax economics at Erasmus School of Economics, BNR Nieuwsradio raises the question whether the foreign investors have a point.
According to Kavelaars they certainly have a point. ‘These are mainly foreign investment funds and institutions that invest part of their money in the Netherlands and pay tax on the dividends. However, for the same investment fund in the Netherlands, such a dividend tax does not exist. So the question is, whether this is in conflict with European law.’ As soon as the European Court concludes that this is in conflict with European law, one of the consequences, according to Kavelaars, is a substantial charge on the incomes from the dividend tax.