May 5, 2009

Netherlands denies being low-tax

Dutch diplomats in Washington denied Tuesday that the Netherlands is a low-tax country, saying its corporate taxes are moderate.

Floris van Hovell, a spokeswoman for the embassy, said the fully transparent corporate rate is 25.5 percent, in the medium-tax rate category, Politico reported.

She added the Dutch ambassador to the United States, Renee Jones-Bos, has conveyed this message to the White House, the Treasury Department and the Department of State.

The diplomatic correction was a response to a fact sheet the White House sent reporters Monday as part of the announcement of President Barack Obama's plan to curb alleged tax evasion by moving operations and accounts offshore. In Leveling the Playing Field: Curbing Tax Havens and Removing Tax Incentives For Shifting Jobs Overseas, the White House said that in 2003 one-third of reported foreign profits by U.S. companies came from just three small, low-tax countries: Bermuda, the Netherlands and Ireland.