On April 8, 2011 the Dutch council of ministers approved a measure proposed by the Dutch State Secretary of Finance regarding the tax treatment of currency exchange fl uctuations on participations in subsidiaries. The measure approved by the Dutch council of ministers aims to force taxpayers that want to deduct currency exchange losses on the basis of the Deutsche Shell ECJ decision (while still applying the participation exemption to currency exchange gains) to also pay tax on the currency exchange gains.

The Dutch State Secretary of Finance also intends to include a measure that will prevent taxpayers from deducting a currency exchange loss twice: fi rst as a currency exchange loss, and then also as a liquidation loss. Furthermore, the denial of the participation exemption to currency exchange gains that are realized by transferring subsidiaries within the group is also proposed.