Destination: Dublin as Dutch VAT ‘earthquake’ sends CLO managers scurrying

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By Tom Brown
26 Feb 2020

The CLO industry is expected to make an exodus from the Netherlands as managers with deals in the pipeline look to domicile their warehouses in Ireland. This follows a court ruling in the country, where up to a fifth of the market is located, which stings managers for a tax on management fees in a move that could shrink their income and reduce deal volumes. Tom Brown reports

The law, which will apply a 21% value added tax on the management fees charged on CLO vehicles, made it through the Dutch court on Friday but applies retrospectively from April 1, 2019. The decision is set to be contested.

A court date to resolve the issue is set ...

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