In the Dutch Staatscourant the (English) text of the recently concluded Arrangement between the competent authorities of the Czech Republic and theNetherlands on the automatic exchange of information for tax purposes and conduct of simultaneous tax examinations has been published. According to the Dutch Secretary of State the Arrangement entered into force on October 14, 2015.

Based on Article 2 of the Arrangement the competent authorities of the Czech Republic and the Netherlands will automatically provide each other with information about:

a.      Immovable property:

as far as the Netherlands is concerned: ownership and value of immovable property;

as far as the Czech Republic is concerned: income and ownership of immovable property.

b.      Royalties, if available;

c.      Income from independent personal services or other activities of an independent character (including commissions, fees, brokers’ fees and other remunerations paid to individuals or companies of the other State);

d.      Income consisting of salaries, wages and other similar remuneration;

e.      Directors’ fees and other payments;

f.       Pensions (including public pensions), other similar remuneration, annuities and social security payments.

Article 4 of the Arrangement subsequently arranges that the information referred to in article 2 will be provided periodically and at least once per calendar year. Information with regard to a certain calendar year is provided instantly – if possible – and at any rate within six months after the end of the calendar year it relates to.

Based on Article 5, of the Arrangement the information referred to in article 2 will be provided electronically by CCN mail in the standard OECD format (latest version) or format agreed in accordance with the Directive. The information to be exchanged will also include tax identification numbers, names, dates of birth and addresses, if available.

Article 7 of the Arrangement contains regulations regarding Simultaneous Tax Examinations. Article of of the Agreement reads as follows: 

1.     To achieve more efficiency in the exchange of information and to deal more effectively with cases of tax avoidance or tax evasion the competent authorities may conduct simultaneous tax examinations of selected taxpayers, or groups of taxpayers, carrying on activities in both the Czech Republic and the Netherlands.

‘Simultaneous tax examination’ means an arrangement between both competent authorities in which they agree, when the tax situation of one or more taxpayers is of common or related interest, to conduct simultaneous tax examinations on their own territory in order to exchange any relevant information they may so obtain, if such examinations are considered more efficient than examinations by only one State.

2.     For the procedures for case selection and examination procedures the EU MLC-guide will be followed.

Click here to be forwarded to the (English) text of the Arrangement between the competent authorities of the Czech Republic and the Netherlands on the automatic exchange of information for tax purposes and conduct of simultaneous tax examinations as published in the Dutch Staatscourant.

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