Private Equity

Netherlands to close tax loopholes on leveraged buyouts

The country's government will also launch an independent investigation into the activities of the private equity sector

The Dutch Government is closing a private equity tax loophole
The Dutch Government is closing a private equity tax loophole Photo: iStock

The Dutch government is to tighten rules on the tax deductibility of debt used in leveraged buyouts as the industry continues to face intense scrutiny in the country.

In a letter to the Speaker of the Dutch Parliament on December 21, the Dutch finance minister Jeroen Dijsselbloem said he aims to close a tax loophole that enables private equity firms to get around existing legislation designed to curb tax deductibility on takeover loans.

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