Recent Dutch Case Law On Transfer Pricing Disputes

Last week, the Dutch Court of Appeal in Amsterdam (Court of Appeal) published two cases that were both related to transfer pricing. In the case that was published on 17 July 2024, the Court of Appeal ruled that a significant amount of interest payable on shareholder loans provided to a Dutch taxpayer that acquired real estate located in the Netherlands was non-deductible and was deemed to constitute a dividend to such shareholders. In the other case that was published on 19 July 2024, the Court of Appeal ruled that a significant additional profit had to be recognized by the Dutch taxpayer in relation to a business restructuring that took place.

In this post, we discuss the key takeaways and provide a brief summary of the two cases.