Supreme Court: Business merger facility not applicable to contribution to subsidiary followed by subsequent contribution to grant daughter company of all assets except a business building

On 30 November 2012, the Dutch Supreme Court (Hoge Raad der Nederlanden) gave its decision in X Management BV v. the Tax Administration (Case No. 11/00167; LJN: BV 7390) on the application of the business merger facility to a contribution to a newly established subsidiary followed by subsequent contribution to a newly established daughter company of all of the assets except a business building. Details of the case are summarized below.

(a) Facts. In 2003,…