Questions about the desirability of baby BV and walker investment

A "baby BV" and the "walker investment": these and eight other noteworthy tax structures are described in an appendix to the interdepartmental policy study (IBO) on Wealth Distribution. This study has been submitted to the House of Representatives. Based on this report, the tax on labor and (income from) assets is examined.

For this IBO, experts from the Dutch Tax and Customs Administration have compiled a list of noteworthy tax structures they regularly encounter in practice. The aim of this list is to stimulate discussion about such tax opportunities. In addition to this list , policy guidelines have been provided with options for limiting these structures.

Baby BV
With a baby BV, parents establish a company with the legal structure of a BV. The shares are held by the baby. The parents then work for the BV and continue to run the business. If the value of the shares increases, the benefit accrues to the baby. This is not a taxable gift, because the parents have never held the benefits since the company was established. This avoids inheritance and gift tax.

Rollator investment
Another arrangement mentioned is the rollator investment. In this arrangement, an aunt, for example, deposits €70 million in savings or investments into a holding company owned by her nephew, her sole heir. A structure involving the holding company and operating companies then ensures that her nephew will only have to pay €4.2 million in inheritance tax after her death, instead of €25.2 million. This is because the business succession scheme (BOR) is used, which can provide a significant tax advantage.

Distribution of assets
The IBO Wealth Distribution brings together knowledge about wealth distribution, taxes on labor and wealth, and taxes on various types of wealth. It also suggests how this information can be made permanently available so it can be incorporated into annual decision-making.