Supreme Court ruling on taxation of convertibles and application of participation exemption : a discussion of the case and its broader meaning

On 12 October 2007, in a case dealing with a convertible loan extended by a Dutch parent company to its Dutch subsidiary, the Supreme Court ruled that the benefit for the parent upon conversion must be classified as a benefit derived from (future) share ownership. This article discusses the Supreme Court's decision in more detail, and places it in the broader context of other existing case law, notably the Falcons decision.