On 21 June 2012, the Lower House approved the draft legislation to implement a number of the agreed-upon fiscal measures for the 2013 Budget. Corporate taxation - Restricting interest deductibility for participations The draft article 13L of the Dutch Corporate Income Tax Act (CITA) aims to curb the deduction of "excessive interest expenses" on loans used to finance participations (deelnemingen) in subsidiaries. (a) Background. According to Dutch domestic law, interest expenses are, in principle, deductible for corporate income tax purposes. This is also the case where the interest is related to a participation in another (subsidiary) company ("participation interest"). A...