Netherlands - National Grid Indus Case: Re-Thinking Exit Taxation
- H. van den Broek; G.T.K. Meussen
- European Taxation, 2012 (Volume 52), No 4
- 6 March 2012
This note examines the recent decision of the European Court of Justice in the National Grid Indus case concerning Netherlands exit tax levied on a Netherlands limited liability company transferring its real seat to the United Kingdom. The Court held that exit taxation on hidden values in company assets is allowed but that collection of the tax on the latent capital gains must be deferred until disposition.