I've just had it drawn to my attention that reports suggest that Mongolia has cancelled its double tax treaty with the Netherlands.
The Google translation of the original Dutch report says:
Mongolia at the end of last year the tax treaty with the Netherlands canceled because it claims to be the victim of multinationals that the Dutch tax laws used to evade taxes in Mongolia. It is exceptional that a country with a tax unilaterally terminates
If that is the reason then Mongolia is entirely justified: most tax treaties with the Netherlands are used to exploit the domestic tax law of the country with which it has concluded a treaty. It's my suggestion that many more countries could benefit from following Mongolia's example. TheNetherlands is an aggressive tax haven and needs to be sanctioned if it is to be forced to change its behaviour.
They might also want to do the same with Ireland.
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There was a time when it was really bad news if the Mongolians were cross with you. I don’t think Genghis Khan would have been satisfied with this.
Maybe its something to do with its drug habits?
Excellent idea. If a country thinks it’s not well served by a treaty, cancelling it is spot on.
I notice that there’s apparently discussion around cancelling all Mongolia’s treaties and starting again from scratch. That might be a bit precipitate, of course.
Presumably they’ll be negotiating a new one, with a limitation of benefits clause in it this time.
I have read on blog commments (Mike Sivier’s) that in the Netherlands Unum have already taken over the national health insurance system and that part of your NI equivalent goes directly to one of their subisidiaries. Sounds like the bad guys have already won and, as they say there, got their feet under the table. We should watch the Netherlands closely as it looks like it’s a model for neoliberal thinking. I don’t have the contacts to do this myself, does anybody here?
There has never been a problem with this tax treaty. But maybe the fact that (OT) Oyu Tolgoi’s global (taxation) head office for doing business with Mongolia is in Amsterdam has something done to encourage this? The treaty is mainly a treaty to avoid double taxation and is probably less convenient for other Western countries who’s companies invest in Mongolia through the Netherlands than that it is for Mongolia.