Introduction of Deutsche Shell Legislation in the Netherlands

It is being argued that based on the Deutsche Shell ruling, Member States (and in the context of this article, specifically the Netherlands) are not allowed to exempt foreign exchange losses on EU participations from inclusion in taxable profit. This would result in the asymmetrical situation where foreign exchange losses on a EU participation would be tax deductible, while foreign exchange gains on a EU participation would be tax exempt. This article considers proposed legislation in the Netherlands that would counter this asymmetry.