Source: Weekblad Fiscaal Recht, 2014/180, pp. 180-190.
Author: Laura Cats and Bauco Suvaal

In August 2013, the bill on temporal ringfencing reserves was presented to the Lower House. The bill is a response to the Supreme Court judgment of June 14, 2013. In this article, the authors discuss some particular aspects of the proposed Section 28c and Section 34b Corporate Income Tax Act 1969 following the Memorandum in response to the report and the Memorandum of amendment: whether or not to set-off the book value after an exemption transition, deemed sales, transitional rules and the overlap with the earn-out rules. The authors conclude that the new rules are more workable than previously thought, but require appropriate planning. They also conclude that some areas require explanation, clarification or even amendment of the bill. The authors end their article with their most important conclusions.