Fiscal Compromise
The Fiscal Compromise is a legal binding agreement with the tax authorities to either end or prevent a conflict or legal uncertainty. This fiscal agreement is binding by law, even if the legal position turns out to be different, since the compromise determines the rights and obligations of both parties. Consequently, the circumstance is created, whereby the tax official is confronted with a double commitment; namely to book 7 of the Dutch Civil Code and the principle of confidence. Foreign investment in the Netherlands has gained in popularity, primarily due to the policy of the Dutch IRS to provide confidence regarding taxpayers’ legal positions prior to the execution of their endeavours. The term ‘compromise’ is misleading in this respect, as leading jurisprudence clarified that the fiscal agreement is also binding when one of the parties do not make a sacrifice.
“The learner always begins by finding fault, but the scholar sees the positive merit in everything”
Georg Wilhelm Friedrich Hegel (27/08/1770 – 14/11/1831), German philosopher
Van Clamsfield International Ltd. gives clear guidance and constructive feedback concerning the subjects in the section below:
- Assistance in the application and negotiation of a fiscal compromise;
- Post-amendment of the agreement;
- Nullification due to an evident conflict with the law or a serious defect of consent;
- The duties of parties: to inform and to practice due diligence;
- The realization, span of control, execution and substance of the fiscal agreement.
Van Clamsfield International Ltd. is devoted to crystallizing in detail all formal aspects of the fiscal agreement to strengthen your organization’s legal position.