1. Case Study 3 NETHERLANDS HOGE RAAD (SUPREME COURT) CASE Number 28.638

2. Royal Dutch Shell Luxembourg Co Assignment of dividend coupon X Ltd UK resident

3.  Beneficial ownership determined on date dividend becomes payable not necessary to own underlying shares  Coupon holder (UK Ltd) was beneficial owner of dividend could freely dispose of coupon and/or dividend did not act as an agent in cashing the coupon The Royal Dutch Case

4. The Bank of Scotland case Parent Bank USA France UK Sub 3 years dividend usufruct dividend Attribution of dividend to bank?

5.  Issues Who is Beneficial owner - US parent Can transaction be treated as - loan from UK Bank to US parent Is price paid by UK bank = dividend before withholding tax Can UK bank receive avoir fiscal Beneficial Ownership and abuse of law Principles  Court of Appeals of Paris Beneficial owner - UK bank  Conseil d’Etat (29 December 2006) UK bank - not beneficial owner Followed re-characterization as loan