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Article: U.S. Renounces Tax Treaty With Netherlands Antilles
- Article from:
- The Washington Post
- Article date:
- June 30, 1987
- Author:
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The Treasury Department yesterday renounced the tax treaty
between the United States and the Netherlands Antilles, ending a tax
haven that had allowed companies to borrow money at reduced interest
rates until 1984.
The decision, which will have the effect of imposing a 30
percent withholding tax on pre-1984 Eurobonds issued through
Antilles-based companies, could induce some issuers to call in their
outstanding affected bonds. However, analysts said they doubted the
effects would be significant because the bonds constitute a
relatively small portion of the gigantic Eurobond market.
The Treasury gave no public explanation for terminating the tax
treaty, which will expire Jan. 1. ...