New legislation in the area of international tax law, such as the Anti-Tax Avoidance Directive 2 (ATAD2) is becoming increasingly complicated and far-reaching. We can use our expertise and our tax technology tools to provide you with insight into the consequences of ATAD2 for your business. We can provide insight regarding your tax position and we can map your tax obligations.
ATAD2 and tax consequences
As tax advisors, we follow the developments surrounding ATAD2 closely. ATAD2 provides particularly complicated tax legislation which addresses unwanted tax consequences of hybrid mismatches. ATAD2 affects every company in an international structure. What does this legislation mean for the deductibility of costs? What administrative obligations will apply to your company as a result of ATAD2? These are questions that are difficult to answer, unless you possess the required specialist knowledge. Baker Tilly has the expertise and the tax technology tools to provide you with insight into the consequences of ATAD2. Please read our ATAD2 news articles for more information.
International network and ATAD2
ATAD2 affects the Dutch corporate income tax return. In applying the ATAD2 regulations, foreign tax law is of great importance. To assess the impact of ATAD2 in your specific case, knowledge of foreign tax law is therefore necessary. Examples include the qualification of your Dutch entity, or entities, under foreign tax law, and the manner in which income and expenses are processed in the tax returns of the foreign participants. These legal analyses are examples of mandatory documents for your (inter)national tax return. The international network of Baker Tilly can be very beneficial for you. The advisors of Baker Tilly Netherlands frequently work with colleagues from the Baker Tilly International network to provide such analyses efficiently, and with the right level of expertise.
ATAD2 risks and documentation obligations
ATAD2 includes documentation obligations. These obligations are extensive and apply to any Dutch entity that is part of an international structure. In cases of insufficient documentation, the Dutch tax authorities may increase the burden of proof, making it harder and more expensive to show that ATAD2 is not applicable to your situation. Baker Tilly has developed a tool that offers you a concrete indication of the areas in which your company is at risk in light of ATAD2, and what documentation obligations consequently apply. You can use this tax technology tool, the ATAD2 Risk Assessment, unassisted, but we would of course be happy to help you. Please feel free to contact us for assistance.
Our expertise in international tax law and ATAD2
Baker Tilly is fully equipped to help you address any issues with regard to international tax advice and ATAD2. We have the in-depth knowledge required to outline the impact of ATAD2 on your organisation. Our specialist advisors regularly publish articles in renowned professional journals. Examples are:
- Dolf van Kappel and Gijs Fibbe, The new documentation obligation in Article 12ag Dutch CITA, Maandblad Belasting Beschouwingen, February 2020 (2)
- Mike Makkinje, Main points of ATAD2, NTFR-B, September 2020
- Gijs Fibbe and Ton Stevens, International tax aspects of partnerships, Chapter 6 of the book Taxation of partnerships, March 2020
- Ton Stevens and Gijs Fibbe, Hybrid thoughts on BEPS and ATAD2 (part I: hybrid financing and part II: hybrid entities), NTFR 2017/40 and NTFR 2017/45
- Philippe Albert, Personal holding companies without substance: an artificial construction? , Weekblad Fiscaal Recht
- Philippe Albert, The abuse test of Article 4-3-c Dutch Dividend Tax Act and 17-3-b Dutch CITA: changed priority rules?, NTFR Beschouwingen 2019/41
Do you have any questions regarding your business and the consequences of ATAD2? Would you like an impact analysis regarding ATAD2 or the documentation obligations for your organisation? Or do you have any other questions concerning international tax law? Please do not hesitate to contact us.