Dutch gov't promises some reform of tax policies

AMSTERDAM (AP) The Dutch government says it will introduce reforms to reduce the harm caused to developing countries by multinational companies exploiting the Dutch tax system.

Earlier this year, a report by the country's Institute for Economic Investigation estimated developing countries lose out on some 145 million euros ($192 million) in tax revenues annually as a result of Dutch tax laws. It found that multinationals were funneling money through the Netherlands to tax havens.

Economic Affairs minister Frans Weekers said Friday the government intends to crack down on "mailbox" companies that receive dividends from foreign sources and then send them abroad without other economic activity in the Netherlands.

However he said other problems must be addressed at an international level. Favorable Dutch treatment of royalties and dividends will remain intact.

This story has been automatically published from the Associated Press wire which uses US spellings

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