1980 treaty between UK and Netherlands – Supreme Court decides that pro-rata attribution of business profit exemption is not incompatible with EU freedom of establishment

On 13 July 2012, the Dutch Supreme Court (Hoge Raad der Nederlanden) gave its decision in X. v. the tax administration (Case No. 10/04135: LJN BR6377) concerning the attribution of the business profit exemption under the Netherlands - United Kingdom Income Tax Treaty (1980) (the Treaty). Details of the case are summarized below.

(a) The taxpayer was an individual, resident in the Netherlands. He was a partner of a Limited Liability Partnership law firm, which next …