Taxing times

A seemingly unremarkable tax treaty signed last February between Poland and the Netherlands slipped under the radar of many bond investors. But as Alan McNee reports, the treaty could have serious ramifications for holders of Polish Eurobonds

Bilateral tax treaties are rarely the cause of dramatic headlines or big market moves. But last month the emergence of a treaty between Poland and the Netherlands has led to turmoil in the secondary market for some Polish corporate bonds.

Given that the treaty is officially titled Convention between the Kingdom of the Netherlands and the Republic of Poland for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, it is not hugely surprising