Dutch PM grilled on controversial tax plan memos

THe HAGue: Dutch lawmakers grilled Prime Minister Mark Rutte after the government published sensitive documents about its controversial plan to scrap dividend tax for companies, which will

 reportedly cost the country 1.4bil (RM6.67bil).

Opposition MPs however failed to pass a motion disapproving of the business-friendly Rutte, who stuck to his guns during a marathon nine-hour debate in the 150seat lower house ending early yesterday.

MPs were outraged after Rutte’s four-party coalition government this week released the confidential papers under pressure about its plans to exempt companies from paying tax on dividends – which government says will attract more investment.

The opposition said they were not informed of government’s plans, which were contained in memos tabled during gruelling behind-thescenes talks last year to form a coalition government after elections in March.

The MPs added that Rutte and his coalition made the decision to nix dividend tax despite advice to the contrary by experts at the finance ministry in The Hague – which were also contained in the memos.

During a debate in November last year, Rutte told parliamentarians “he had no recollection of having seen any memos” discussing the tax plan during eight months of tough government formation talks.

Last Friday, Rutte however admitted that the internal memos discuss- ing the issue may well exist, but that he did not recall seeing the documents.

Rutte then made a U-turn this week and released the documents, which stirred the opposition into a frenzy, accusing the prime minister of misleading them.

“The truth has not been told about the scrapping of dividend tax,” said Labour Party leader Lodewijk Asscher.

“The prime minister is responsible for that. He didn’t act with credibility,” Asscher said.