On 11 May 2007, the Dutch Supreme Court ruled on a triangular case (No. 42.385) involving the availability of a credit for withholding tax on interest receipts of a Belgian permanent establishment (PE) of a Dutch company, derived from third state sources.
(a) Facts. A Dutch BV carried out business activities in Belgium through a PE. The Dutch BV had debt claims on Brazilian and Italian group companies, the indebtedness of which was bor…