The Dutch Government plans to strengthen the regulatory regime for representative offices of Dutch trusts, preventing tax evasion and fraud. Recently the Minister of Finance Wopke Hoekstra has announced the key provisions of the new supervisory mechanism approved by the Council of Ministers.

In accordance with the introductions, the trust management scheme should be organized as a private or state company (BV or NV) and fulfill certain requirements within the framework of the test for physical presence in the country. Passing the test involves conducting day-to-day management of the trust in the territory of the Netherlands by at least two of its managers.

Another significant change is the ban on the provision of trust management services and tax planning to the same person, as well as on the transfer of their competencies with respect to observing the compliance requirements for external management. The obligation to exchange information with each other within the framework of a due diligence mechanism is also introduced for the trusts, so the client who does not meet the verification requirements in one company will not be accepted into another.

The reformed legislation extends the supervisory powers and rights of the Dutch Bank (DNB) regarding the imposition of sanctions. Now the amount of fine imposed on the trust may reach 5 million euros (comparing with the maximum penalty of 4 million euros earlier). In addition, the Bank is now given the opportunity to revoke licenses for the right to do business.

The bill has been sent to the State Council for consultations and will be published after submission to the House of Representatives.

Gambling tax. Holland

The lower house of Dutch parliament approved rule, which can regulate and provide online gambling taxation.

Remote Gambling Bill has plan to open Dutch gambling market for foreign outer gambling companies which provide taxation about 29 percent of gamble gross revenue, the same way of taxation have had already gamble land-based operators.

According to previous version of draft law, tax for online gambling fixed about 20 percent. The acting coalition included remark to legislation in the beginning of this year for agreement this tax. Nevertheless, the final version of this law approved by the law house 7 July contains measure of decreasing about 25 percent at the end of three years period.

In this proposing for the first time was planned to go into force this rule in 2015, but now they were waiting for voting in the Senate. In case of approving by upper house, expect that the process of application submission a new license for gambling in the first half of the next year, and that this new regime will fully up in the middle of 2017 year.

Author: Olena Kutova

senior lawyer of the Finance Business Service company