Hoge Raad: renteaftrek kan worden geweigerd ondanks heffing Luxemburg

The Dutch Supreme Court ruled that interest deductions can be denied based on fraus legis (abuse of law) even when a compensating tax levy has been imposed in Luxembourg. The case involved a joint venture between Dutch and French banks, where a Luxembourg subsidiary acquired a Dutch company and provided loans with interest deductions that were offset by dividend exemptions on preferred shares. The court determined that the limited recourse loans lacked genuine business purpose and upheld the tax authority's denial of interest deductions for 2007-2009, confirming that compensating foreign