Dutch lawmaker to push ahead with Unilever "exit tax" plan

Bart Snels, the Dutch opposition lawmaker who put forward an "exit tax" on large corporations leaving the Netherlands in order to relocate to cheaper tax regimes, has said that he intends to push forward with the idea.

Snels, an MP from the GroenLinks (GreenLeft) Party, proposed the law in an attempt to anchor Unilever and Shell in the Netherlands, though it remains unclear whether other parties in the Dutch parliament will ultimately support the plan. 

Two centrist coalition parties, D66 and ChristenUnie (Christian Union), have said they are considering giving their support to the bill, and centre-right party CDA has said the same.

Despite some cross-party support for the idea, The Netherlands' Council of State, which offers advice to parliament on the legality of proposed legislation, said earlier this month that the tax, as it stands in its proposed form, would violate some of the basic principles of Dutch rule of law.

In September, Unilever's Dutch shareholders voted overwhelmingly to support the company's plans to move to London, in an attempt to simplify the corporate structure and unify the company.

Earlier this month, shareholders in the UK also gave their backing to the relocation plan.

If the bill is successful, it could theoretically lead to the levying of an €11 billion tax on Unilever. 

Snels released a statement saying that he was prepared to answer any "legal questions to demonstrate that this proposal complies with international laws and regulations.”

“This is serious legislation designed to end a serious form of tax avoidance,” he said.

Last week, Unilever's boards said that they intended to push ahead with the unification plans. 

On November 2, a scheduled hearing at the UK High Court is likely to approve the cross-border deal, with unification coming on November 29.

The amended bill, which would then apply the taxes on Unilever retroactively, needs to be reviewed once more by the Council of State, then debated and approved by both chambers of the Dutch parliament before it becomes law. 

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