Supreme Court: Joint venture considered "group" subject to thin capitalization rules

On 21 September 2012, the Netherlands Supreme Court (HogeRaad der Nederlanden) gave its decision in case No. 10/02824, X. B.V. v. Staatssecretaris van Financiën. The case concerned the application of article 10d of the Corporate Income Tax Law (CITL), i.e. the thin capitalization rule. Details of the decision are summarized below.
(a) Facts. J Beheer B.V. (J) and A Beheer B.V. (A) were two Dutch resident companies, each engaged in the catering business. J did this through a 100% su…