The Netherlands has long faced criticism for its role in facilitating tax avoidance through its network of double taxation treaties (DTTs), particularly regarding developing countries, e.g., recently in a report of the Tax Justice Network (TJN). A review of the general Dutch tax policy shows that the country has taken several steps to reform its DTTs, undertaken domestic reforms to address tax avoidance issues, and has been offering tax-related capacity development (CD) programmes to developing nations. The authors ascertain from the results of an analysis of the parliamentary debate in terms of the contents of DTTs with developing countries and changes in domestic law as well as interviews with several stakeholders in the Netherlands and in developing countries show that the Netherlands is still likely to play a prominent role in global tax avoidance. This applies despite the significant changes in policy and substantive and procedural law. Not all loopholes have been closed, and adopting anti-abuse clauses in DTTs with developing countries - a central part of the Dutch response - has been somewhat disappointing. Moreover, the process of providing tax-related CD is not optimal, and tensions remain regarding the goals that the Netherlands attempts to pursue in tandem, potentially leading to policy incoherence. Moreover, unilateral action is unlikely to result in a reduction of global tax avoidance as financial flows - and therewith tax avoidance - are likely to shift to other countries. The global minimum tax (GMT) and other parts of the two-pillar proposal are more likely to offer a breakthrough for certain types of tax avoidance. Hence, a continued international dialogue on tax matters is needed to address all types of tax avoidance. In the parliamentary discussion on this topic, the Dutch Secretary of State for Finance reconfirmed the policy to assist developing countries in strengthening their tax systems in respect of the GMT through being in favour of a broader scope of Amount B, providing technical assistance in the implementation process of Pillars 1 and 2, and through the OECD's Tax Inspectors Without Borders (TIWB) project. The objective of this article is to add to the policy discussion on how to strengthen the tax systems of developing countries.
