In response to the interview of NOS with Unilver’s CEO Paul Polman, Bas Jacobs, Professor of Public Economics at Erasmus School of Economics, dissects a number of Polman’s statements concerning the abolition of dividend withholding tax. Jacobs briefly and forcefully explains how the statements are incorrect.
Among other things, Jacobs discusses the statement of Polman that dividend withholding tax is a double tax and that besides the Netherlands countries do not have a dividend withholding tax. According to Jacobs this statement is incorrect, ‘since it is given that almost all OECD countries do have a dividend withholding tax for foreign shareholders.’ In addition, ‘dividend withholding tax is often not a double taxation, because countries make international agreements to prevent shareholders from having to pay tax twice’, says Jacobs.
In an earlier interview in dr. Kelder & Co, Jacobs gave his opinion on the Dutch government’s surprise decision to abolish the country’s dividend withholding tax.