On 22 March 2013, the Netherlands Supreme Court (Hoge Raad der Nederlanden) gave its decision in X BV v. Tax Administration (No. 11/0599; BX6710), on whether or not the Netherlands may tax a reinvestment reserve (herinvesteringsreserve) resulting from the sale of immovable property located in the Netherlands by a company whose place of effective management at that time was located in Luxembourg and thereafter in the Netherlands. Details of the case are summarized below.
a) Facts. X BV (t…