A Dutch court has held a tax adviser liable over a cross-border tax arrangement built on paper-only employment. The first-instance ruling puts adviser warnings, real work and implementation records under scrutiny.
Why this matters
Contracts and payroll records do not prove that a foreign job exists. The court examined advisers who arranged companies, employment and salary funding without real activity. A founder emigrating with a substantial shareholding may still face a protective tax assessment. Later dividends, a share sale or closure can affect that deferred Dutch tax claim. This first-instance ruling rests on its own facts. The file needs records that match daily business life.
Example
After selling shares in a family company, an owner plans to move to Spain. A Spanish company employs her and pays a salary. The file has signed documents, but no regular duties, customer work or decisions made in Spain. Payroll funding keeps the arrangement in place. A later dividend can affect her Dutch protective tax assessment. That may leave less cash for the move or private spending.
XTROVERSO tips
- Map the full structure. Put companies, owners, directors, bank accounts, contracts, payroll and main cash flows on one page. State where management decisions are made.
- Test every foreign role. Record actual duties, reporting lines, work output and the reason for the salary. Check calendars, customer files and routine business records.
- Follow the cash. Check whether payments fund useful work or keep the arrangement running. Salary, invoices and supplier payments need a clear commercial reason.
- Record challenges and stop points. Keep warnings, rejected assumptions and client decisions in the file. Define which missing fact would stop implementation.
- Keep deferred Dutch tax visible. Include the protective tax assessment when planning dividends, a share sale, succession and private spending. Deferred tax affects usable cash.
Need a practical review of a cross-border structure, its records or its cash impact? Our team can help identify the gaps
The data, sourcing, and analysis behind this article were conducted by Paolo Maria Pavan. AI was not used to identify sources, build the factual basis, or produce the analytical judgment contained here. AI was used only as a drafting aid. The final English text was personally reviewed, edited, and approved by Paolo Maria Pavan before publication.
References
- Rechtspraak — Civil liability of a tax adviser for an international sham arrangement
- Taxence — Adviseur schendt waarschuwingsplicht bij schijnconstructie
- Belastingdienst — Conserverende aanslag bij emigratie
- Belastingdienst Kennisgroepen — Residence and Dutch tax liability
- Bureau Financieel Toezicht — Algemene leidraad Wwft
