Netherlands: Credit Suisse ordered to pay 300m EUR to tax authorities for creating “imaginary world”

A court in the Netherlands has ordered Credit Suisse to pay 300 million EUR in back taxes and fines to the Dutch tax authority, says an article on nrc.nl dated December 19th. The tax authority alleged that Credit Suisse had wrongfully claimed tax deductions on transactions worth billions of euros; the North Holland court agreed on almost all counts.

Between 2005 and 2009, Credit Suisse registered corporations in the Netherlands “on a large scale”, channeled 18 billion euros in “internal loans” from its London branch to these corporations and then attempted to claim tax deductions on the interest.

According to the article the Dutch tax authority looked into this scheme and decided that Credit Suisse had created an “imaginary world” of transactions with no purpose other than avoiding tax.

The story was first reported by the Financiele Dagblad. It seems to have received little media attention outside of the Netherlands so far, which may be due to an over-supply of similar stories involving banks in recent months.

(Original articles in Dutch – translation for this summary with help from google).

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