12-04-2011
European Commission takes the Netherlands to court because of ANBI procedure

The European Commission has stated that it will be instigating legal proceedings against the Dutch Government because of an ANBI [public benefit organization] facility. Domestic organizations may apply to the Tax Authorities for an ANBI status. Various tax advantages are attached to such ANBI status, which include, gift tax exemption. This facility also allows the grantors a tax deduction in their income tax. A foreign organization must, however, first contact the Tax Authorities prior to making application for a ANBI ruling. The European Commission holds the view that the reporting requirement for foreign organizations is disproportionate and, as a result, it is not compatible with Community Law.

If the European Commission wins these proceedings, this could mean that the reporting requirement for foreign organizations will cease to apply.

Click here for a copy of the press report.

For further information on the ANBI facility and recent developments, please contact Mohamed Bouallouch.