Dutch Exit Tax Rules Restrict Freedom of Establishment, ECJ Says

On 31 January 2013 the Court of Justice in Luxembourg ("ECJ") again found, in an infringement procedure started by the European Commission against the Netherlands, the Dutch rules on exit taxation to be in breach of EU Law.  The various Dutch provisions that provide for exit taxation were found to be restricting the freedom of establishment as laid down in article 49 Treaty on the Functioning of the EU ("TFEU").  Although such exit tax may be justified by the need to ensure a balanced allocation of taxing rights between Member States, the obligation to immediately pay such exit tax was considered to be disproportional.


Download PDF Share Back To Listing
Loading data