- J. Reyneveld; M. Bonekamp
- International Transfer Pricing Journal, 2012 (Volume 19), No 1
- 5 January 2012
A recent court case decided by the District Court in The Hague regarding a captive insurance company involved in reinsurance activities seems to follow the current general approach of the Dutch tax authorities on captives. This article considers this decision in light of existing Dutch case law and the UK Dixons case. There is a striking difference in the approaches taken by the District Court in The Hague and the UK Special Commissioners concerning the Dixons case. Where the decision in the Dixons case focuses on the appropriateness of the transfer pricing method, the District Court in The Hague reclassifies the transactions under review. This article discusses these different approaches to captives. The issue will in particular be considered in the context of the OECD Guidelines.