INTRODUCTION
"Doe normaal" is practical advice in the
Netherlands encouraging one to act normal. In the past, that phrase
would describe commonly used plans to reduce tax. Today, if the old
normal is followed by a group effecting an acquisition, it could
end up facing unintended consequences. Legislators and tax
authorities are increasingly examining traditionally
"normal" acquisition structures and financing
arrangements in a quest to combat deemed abusive tax arrangements.
Like its fellow E.U. Member States, the Netherlands has shifted its
tax policy agenda in recent years in line with international and
E.U. initiatives to target abuse.
The U.S. has targeted abusive arrangements for several decades
via common law doctrines and codified anti-abuse rules, including
the economic substance doctrine and conduit financing regulations.
Consistent with these U.S. provisions, the E.U. is imposing its own
anti-abuse rules, scrutinizing transactions lacking a
