The American shoe manufacturer Crocs has found a new way to avoid tax in the Netherlands.
That saves the company tens of millions of euros in tax,
The old strategy that Crocs used to avoid tax was no longer attractive due to intervention by Brussels and Washington.
The company has since found a new route.
Crocs, like 65 other American multinationals, has used the cv/bv route in recent years.
This is apparent from research by journalistic research platform The Investigative Desk for
That route involved American multinationals collecting worldwide earned profits in a Dutch limited partnership (CV).
Neither the Dutch nor the American tax authorities levy any tax on this.
As a result, the CV functioned as a piggy bank.
The companies only had to pay taxes if they took the money out of that piggy bank, but they could postpone it indefinitely.
The route was the main argument for calling the Netherlands a tax haven, but the trick is no longer profitable due to tax reforms.
Crocs, however, has found a new route.
A Dutch company of Crocs buys the intellectual property from the CV and may write off that purchase.
In the case of Crocs, this creates an item of 419 million dollars (more than 354 million euros).
Crocs can offset that amount against future profits, so that the group has to pay much less tax in the Netherlands.
The outgoing cabinet is already working on a way to make this trick impossible as well.
The proposal is expected to be sent to the House of Representatives next Budget Day.