The Netherlands is world leader in providing tax breaks to international corporations. Our country is one of the two most important tax havens in the world for multinationals. Financial geographer Rodrigo Fernandez of SOMO has been interviewed at EenVandaag, a Dutch TV current affairs show.
The Netherlands is world leader in providing tax breaks to international corporations. Our country is one of the two most important tax havens in the world for multinationals. Megasized companies in the food, oil and garment industry locate offices in the Netherlands on paper in order to profit from our advantageous tax climate for foreign companies. The Netherlands, a tax haven: whom does it benefit?
The Rolling Stones, U2, Boeing, US Steel, Walt Disney and Johnny Walker: they are not from the Netherlands but they pay taxes here. The Netherlands earns millions from the presence of these types of multinational concerns who are seeking a safe haven because they would have to pay more taxes in their own country. They are not producing anything in this country, but they have an office (‘mailbox’) for tax purposes.
The Netherlands tops the world chart of tax havens once again, according to research being published today by ActionAid. And that is good for the national treasury. But there are also drawbacks to this arrangement. ‘Tax havens’ such as the Netherlands, Ireland and Luxembourg are diverting substantial tax revenues from the countries where the companies are actually carrying out their work. America is not happy with the Netherlands and developing countries also voice criticism of tax havens such as the Netherlands. They see their income tax revenue disappearing.
EenVandaag spoke with Willem Vermeend, internet entrepreneur and affiliate professor of European Fiscal Economics. He was involved in the creation of the current tax climate as past state secretary of Finance. Nick Shaxson, who in his book ‘Treasure Islands’ voices some harsh criticism on tax havens, gives his views on the number 2 position of the Netherlands. Financial geographer Rodrigo Fernandez of SOMO Centre for Research on Multinational Corporations was also interviewed during this show.
The EenVandaag episode of 14 October 2011 is in Dutch. See below: