On 9 November 2012, the Netherlands Supreme Court (Hoge Raad der Nederlanden) gave its decision in case number 11/05078, on whether or not a subsidiary's reinvestment reserve (herinvesteringsreserve), upon removal of that subsidiary from a fiscal unity, is taxable at the level of the parent company. Details of the decision are summarized below.
(a) Facts. The Taxpayer (the parent) was a Dutch resident company with four subsidiaries. Together, these five companies formed a …