De Volkskrant and the website Follow the Money claim that by routing its 2004 investments in the Irish pharmaceutical company Warner Chilcott through the Netherlands, Bain was able to dodge dividends and capital gains taxes. Financial adviser Jos Peters estimates that the loophole allowed Bain to save about $102 million.
In 2009, 4 years after investing in Warner Chilcott, Bain moved the company's seat from Bermuda to the Netherlands to evade possible stricter tax laws on the island, De Volkskrant explains.
Radio Netherlands Worldwide summarized what happened next:
Then two years ago, Bain registered its interest in Warner Chilcott with the private Dutch company Alter Domus, which provides administrative services for multinational corporations and investment funds. If a Dutch company owns more than five percent of the shares in another company, then that other company is exempt from paying taxes on all capital gains.Through exemptions like that and a host of other complicated tax treaties, the Netherlands offers huge tax breaks to companies like Bain, which is reported to have evaded 80 million euros in dividend taxes by running through the Netherlands."We are world champion in participants exemptions," Dutch financial adviser Jos Peters told De Volkskrant.