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Can a non-EU national claim the ‘EU defence’ on Dutch income?
My client plans to establish a business in the Netherlands using a Dutch company. He is UK tax resident but is not a national of the UK or of any other EU member state.
At first sight it seems to me that the income arising to the Dutch company will be taxable on my client under the transfer of assets abroad rules (as transferor). However he is considering his ability to claim the EU defence in ITA 2007 s 742A on the income that will arise to that company.
The client is confident that his business will meet the various ‘arms’ length’ and ‘commercial substance’ requirements for the EU defence in s 742A. However he is uncertain about his eligibility to EU law rights under the Treaty on the Functioning of the European Union (TFEU).
My understanding is that the EU defence can be claimed...
