THE NETHERLANDS: Cruijff achieves abolishment of gift tax
In an unprecedented manner, Johan Cruijff has been able to abolish the Netherlands gift tax levied gifts for public benefits. Recently the 11% tax rate had already been reduced to 8%, but Cruijff's comments on the levy of gift tax on the soccer fields donated by the Cruyff Foundation (see our previous news item) have convinced politics to abolish the gift taxes on these gifts. The abolishment is scheduled to become effective per 1 January 2006, and the Under Minister of Finance has publicly advised to postpone gifts to early next year.
The annual revenue concerned is apparently about 40 million Euros per year; compensation will be sought by an increase of the betting and lottery tax rate from 25 to 30%.
