Dutch, under pressure to close loopholes, offer poor nations tax treaty renegotiation

 
The Dutch government will offer nearly two dozen developing countries the opportunity to renegotiate tax treaties to close loopholes that allow multinationals to avoid taxation, the Finance Ministry said Friday.       

The Dutch have come under increasing international pressure to take steps to crack down on their tax system, which enables multinationals to avoid higher taxes in some other countries by setting up a base in the Netherlands.                   

"By making use of loopholes in tax treaties in combination with differences between national tax rules, internationally operating companies can avoid paying tax," Development Cooperation Minister Lilianna Ploemen said in a statement.                     

 "It means that poor countries miss out on tax revenues, funds they clearly need for matters such as infrastructure and education."                  

The announcement comes just days before international tax avoidance is discussed during meetings at the G20 in Moscow. 


REUTERS