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Dutch Shell Companies and International Tax Planning

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  • Lejour, Arjan

    (Tilburg University, Center For Economic Research)

  • Mohlmann, Jan
  • van't Riet, Maarten
  • Benschop, Thijs

Abstract

This paper uses the financial statements of special purpose entities (SPEs) for explaining the origin and destination of dividend, interest, and royalty flows passing the Netherlands. We find that Bermuda is the most important destination for royalty flows. These flows come from Ireland, Singapore and the United States. For dividend and interest payments the geographical pattern is more widespread. We find a substantial tax reduction for royalties by using Dutch SPEs compared to a direct flow between the origin and destination country. However, we cannot find such tax savings for dividends and interest with an approximation based on statutory tax rates. This Discussion Paper reports research on the financial flows already presented in the CPB Policy Brief of 24 January 2019: Conduit country the Netherlands in the spotlight.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Lejour, Arjan & Mohlmann, Jan & van't Riet, Maarten & Benschop, Thijs, 2019. "Dutch Shell Companies and International Tax Planning," Discussion Paper 2019-024, Tilburg University, Center for Economic Research.
    • Handle: RePEc:tiu:tiucen:175074ad-0248-4c86-b313-a11e828b97c9
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    References listed on IDEAS

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    More about this item

    Keywords

    corporate taxation; international tax planning; treaty shopping; bilateral dividend flows; bilateral interest flows; bilateral royalty flows;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm

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