The Dutch Supreme Court has asked the Court of Justice of the European Union to resolve two separate disputes concerning whether the Netherlands can deny foreign investment funds refunds of the Dutch dividend withholding tax, according to filings published May 29.
Requests for a preliminary ruling from the Hoge Raad der Nederlanden concern Case C-156/17, involving the Dutch State Secretary of Finance and Köln-Aktienfonds Deka, and Case C-157/17, involving the Secretary and X, an unnamed party. Both preliminary ruling requests were lodged on March 27.
The Dutch Court asks in both disputes whether EU concepts of free movement of capital forbid the Netherlands from denying an investment fund established outside the Netherlands a refund of dividend tax withheld on dividends received from a Netherlands company on the on the grounds that the investment company is not subject to an obligation to withhold Netherlands dividend tax.
Such a refund is granted to a fiscal investment institution established in the Netherlands which, subject to the withholding of Netherlands dividend tax, distributes the proceeds of its investments to its shareholders or participants on an annual basis.
