Based on the France-Netherlands tax treaty, a French company was found not to have withheld tax from its royalty payments to a Dutch CV (Commanditaire Vennootschap, a type of silent partnership) whose partners were two Dutch BVs. The French tax administration argued that the treaty was not applicable because the Dutch CV is not subject to income tax, and therefore is not a resident of the Netherlands within the meaning of the tax treaty.
March 01 2000