Thursday, May 14, 2020
to prohibit the use of tax flow-through entities and the provision of trust services to high-risk third countries and EU Blacklisted jurisdictions
Loyens & Loeff writes that the Netherlands government proposal entails the following prohibitions:
- The prohibition to facilitate the use of a flow-through entity, which currently is one of the trust services under the Wtt 2018.
- It will be prohibited to enter into a business relationship or provide a trust service in case a client, object company or the UBO of a client or object company resides in or has its seat in (a) a high-risk third country or (b) a non-cooperative jurisdictions for tax purposes. The original list of high-risk third countries adopted by the European Commission may be found here, more countries were added to the list in October 2017, December 2017 and July 2018. A list of non-cooperative jurisdictions for tax purposes is kept by the EU Council and can be found here.
Proposals in Dutch from Dutch Ministry here