Stricter rules against corporate tax avoidance needed: left wing parties
The caretaker Cabinet's plans against tax avoidance by multinationals do not go far enough for some of the opposition. At the initiative of GroenLinks, several parties have come up with additional proposals. They estimate that these would generate an extra 1 billion euros per year for the treasury.
Most of the money can be raised by no longer allowing companies to cut their operations indefinitely. Concerns can now benefit from the low tax rate levied on the first part of the profit multiple times. Also, certain tax benefits apply to each individual business unit. GroenLinks wants to amend the law so that the low rate and other "tax gifts" can be used only once.
In addition, GroenLinks wants to considerably limit the transition period in which companies can continue to benefit from tax constructions of the past. The party also believes that foreign real estate investors should always pay tax on their sales profits. Now they are exempt from this if their investments are made through a Dutch investment fund.
GroenLinks MP Senna Maatoug acknowledged that the caretaker Cabinet is taking "good steps" in the tax plan for 2022, which will be discussed in parliament this week. But "the plan only closes down fiscal shortcuts to a limited extent. More is needed to close the gaps that multinationals make use of in the Netherlands." She is supported by the PvdA, Volt, DENK, and the independent MP Pieter Omtzigt. The SP also supports some of the proposals.
Reporting by ANP.