Supreme Court returns farmer’s taxation cases to lower court

THE HAGUE – The Hoge Raad, the supreme court of the Netherlands has ruled that farmers who leave the country to continue their operation elsewhere are not necessarily quitting their operation, even if they ship their products to another processor in another country. The Dutch taxation service (belastingdienst) wanted to stop the generational transfer of farming operations when they were taken across the border, for example, to Germany, also part of the EU. Taxation inspectors argued that such moves constituted liquidation of the business. The case dates from 2004 and has been bounced around by yes, no, yes rulings. Another case involves the proceeds of the sale of milk quota and the question of whether or not they that can be rolled over for reinvestment across the border. The court squashed the lower court’s ruling and sent both cases back to be retried, attached with the Supreme Court’s opinions. The Dutch taxation services also has been pursuing farmers continuing their operations in Canada.