On 1 March 2013, the Dutch Supreme Court (Hoge Raad der Nederlanden) gave its decision in X v. Tax Administration on the taxing rights with respect to a devaluated debt-claim under the Belgium - Netherlands Income and Capital Tax Treaty (1970) (the Treaty). Details of the case are summarized below.
(a) Facts. The taxpayer was a resident of Belgium. He was the sole shareholder of a Dutch BV and he granted various loans to that company. In 2001, he devalued the claims but that devaluation …