Undisputed 3: Redemption 720p Torrent
Malena Bower
On 11 July 2023, a knowledge group of the Dutch Tax Administration (DTA) issued a statement on the tax treatment of interest swaps. The case at hand involved a taxpayer that had entered into contracts with Bank X to hedge risks on existing and future variable interest loans from Bank Y and Bank Z. When the interest rate swaps were entered into, they contained mutual break clauses. Under a mutual break clause, both parties have an option right on agreed dates to terminate the interest rate swaps prematurely, against settlement of the market value at that time. It was undisputed that, despite the existence of the mutual break clauses, there was such a correlation between the variable interest loans and the interest rate swaps that the fixed risk on the money loans as at the balance sheet date was highly mitigated. Following Dutch case law, the taxable result on the variable interest loan and the interest rate swap (collectively also referred to as swap combinations) should then be determined jointly as a result of such correlation.