Netherlands-based senior managers may have to reassess their contracts if they want to avoid being listed as a company’s ultimate beneficial owner, a senior tax attorney warns, in light of a draft measure to combat money laundering, tax evasion, and terrorist funding.
The provision would allow companies’ senior managers to be identified as their ultimate beneficial owners in a forthcoming company ownership database.
Being appointed as a “pseudo” ultimate beneficial owner (UBO) suggests a level of involvement in the legal entities—often limited liability companies—that “does not at all correspond with economic reality” and that could result in “rather unfavorable exposure” for these senior managers, Duco Lodder, an attorney at the Rotterdam-based Duco Lodder Corporate Law Boutique, told Bloomberg Tax May 11.
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