Think-tank chief says government should do more on tax evasion

DutchNews, October 3, 2018

Laura van Geest: Photo: Robert Goddyn 

The Dutch government should be doing more to get rid of the Netherlands’ reputation as a place to move money through to tax havens, according to the macro-economic policy unit CPB. 

CPB chief Laura van Geest told the NRC in an interview that this is necessary, given the government’s stated wish to improve measures to combat tax avoidance. 

In particular, the controversial decision to scrap dividend tax should be combined with measures to tackle tax evasion, Van Geest said. 

‘We are in the top three of countries most likely to be used to move money through and I am certain the government’s measures will not change that,’ Van Geest said. 

‘We have a pivotal role in multinationals’ aggressive tax planning,’ she said, pointing out that €180bn moves through the Netherlands in the form of dividends, royalties and interest every year. 

Although some measures are being taken – such as the decision to introduce a tax on money streams heading for tax havens in 2020 – more needs to be done, she said. 

‘It is up to politicians to decide what they want to do about this, but if you want to tackle it, you have to show more ambition,’ Van Geest said. ‘And do this without damaging the business climate.’ 

In particular, the Netherlands could tighten up its definition of a tax haven to increase its tax-raising capacity and sharpen its definition of letter box companies, she told the NRC.