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| Netherlands, UK Conclude Competent Authority Agreement |
by Ulrika Lomas, Tax-News.com, Brussels
Wednesday, September 08, 2010
The Dutch government has concluded an agreement
with the United Kingdom on the tax aspects of the Dutch closed-end common
fund, granting tax transparency to both pension funds and investors. The Competent
Authority Agreement provides tax clarity for entities in which assets are brought
together.
The closed-end common fund is used as an investment vehicle by pension funds
and other investors. The agreement with the UK, which entered into force on
August 9, 2010, gives this type of fund certainty with respect to taxes.
According to the Dutch finance ministry, the Netherlands concluded a similar
agreement with Canada in June 2010. Consultations are now also being held with
the United States for the conclusion of a Competent Authority Agreement, it
notes.
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