Tax avoidance by Multinationals in the Netherlands

In the Netherlands, we all pay taxes. People with higher incomes pay more than people with lower incomes. From taxes we pay schools, hospitals, roads, policemen, among other things. Companies use these just as much as citizens, so they too pay taxes. However, large multinationals in the Netherlands can make agreements with the tax authorities that make them pay hardly any tax. GroenLinks finds this unacceptable. We tackle tax evasion by limiting tax avoidance opportunities through, among other things, the innovation box, conduit constructions and establishments in tax havens.

Letterbox
Through complicated tax structures and cleverly set up 'letterbox companies', multinationals such as Google, Apple or Starbucks channel their profits through the Netherlands. This way, they pay only about 2.5 per cent tax on their profits. While the corner shop simply pays the high tax rate, because it cannot use the loopholes in tax laws of different countries. This makes it harder for Dutch SMEs to compete well.

European corporate tax
GroenLinks believes it is time for tax haven the Netherlands to change its laws to prevent tax avoidance. If countries do not make agreements, they will continue to trump each other with low tax rates. As a result, we get a 'race to the bottom' that benefits no one. That is why GroenLinks is pushing for a European common base and a minimum corporate tax rate. As the EU, we can start this right away by making rules together to tackle tax avoidance, for example by banning abusive differences in tax systems as soon as possible.

Action plan
GroenLinks has been fighting for years to substantially reduce excessive tax breaks for multinationals. We are committed to a comprehensive approach to tax avoidance with a concrete action plan that includes, for example, stricter establishment requirements for companies and anti-abuse provisions for bilateral tax treaties. There will be sanctions for companies (trust offices) and wrong countries that facilitate tax avoidance: companies will lose their licences, and tax havens will be given a paradise tax

Source: GroenLinks website