Dutch parliament looking into $6.1bn Uber IP transaction

Dutch lawmakers are investigating why Uber was able to claim a $6.1 billion “tax write-off” by moving IP assets to the Netherlands, it has been reported.

Menno Snel, the country’s state secretary of finance, told the parliament that he had not met with any representatives from Uber Technologies to discuss tax issues but “in general it is true that such contacts take place”, Reuters reported.

Dutch parliamentarians are looking into the transaction, which saw Uber redomicile a subsidiary and IP assets to the Netherlands.

The California-based company disclosed the transaction in a filing with the US Securities and Exchange Commission on August 9.

In the filing, Uber said that the redomiciliation, which took place in March this year, resulted in an increase in “foreign deferred tax assets” worth $6.1 billion.

According to Reuters, Snel told lawmakers that intangible assets, such as IP, could “in general” be amortised in the Netherlands and to offset profits.

Uber is not the first company to face questions over its IP and tax arrangements in the Netherlands.

In January, the European Commission announced that it was investigating Nike and its licensing of IP to two Dutch subsidiaries.

The sports apparel and fashion company earned royalties from the licensing deals which were not taxable in the Netherlands.

According to the European Commission, if Dutch tax laws permitting this arrangement gave undue advantage to Nike, it would amount to “illegal state aid”.

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