The Netherlands: a tax haven. Presentation at CREA’s Real World Economics University of Amsterdam By Katrin McGauran (SOMO) 26 March 2013. Content:. Why bother with tax? Context Tax avoidance mechanisms: profit shifting How is it done? Transfer ( mis )pricing
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Presentation at CREA’s Real World Economics
University of Amsterdam
By Katrin McGauran (SOMO)
26 March 2013
Source: GFI 2012, p.36-37
Holding/conduit companies are used:
Barrick Gold’s Dutch holding company channels loans worth USD 175.4 million from a subsidiary in Barbados (Barbados Corp.) to its Argentinean subsidiary (Argentina S.A.): It is likely that the company uses the Netherlands to avoid WHT on interest.
This interest income is taxed very little in the Netherlands: although interest income from Argentina is subject to tax, the interest payments to Barbados are tax deductible. The company therefore pays a relatively small amount of corporate income tax in the Netherlands (USD14.278) after the payments to Barbados have been deducted.