The Dutch Ministry of Finance has announced the launch of a public consultation on a draft bill to address transfer pricing mismatches arising through different applications of the arm's length principle in different countries. In particular, a new Article 8ba would be added to the Corporate Income Tax Act 1969 that would disallow downward adjustments if the Dutch taxpayer cannot establish that a corresponding upward adjustment was included in the foreign related party's tax base by the other country. In addition, Article 8ba provides that no step-up in basis (up to the arm’s length value) will be provided for assets...