Following a request for a preliminary ruling from the Supreme Court of the Netherlands, the European Court of Justice commented on the Dutch legislation providing for joint and several liability of the establishment's administrator and specifically the circumstances under which the shareholder and managing director of a Dutch holding company may be held liable for the company’s inability to pay the taxes due.
The Supreme Tax Court has held the annual cost of a pension promise to a former owner/manager who retired before the pension date to be a hidden distribution.
The Supreme Tax Court has handed down four judgments on pension promises to managing directors who are also majority shareholders specifying rules for distinguishing allowable business expenses from disallowable “hidden distributions”.
The finance ministry has issued a decree calling for a probationary period of 2-3 years before promising a pension to a director who is also a shareholder.
