The Netherlands is intensifying the fight against corporate taxdodgers that are using the country to evade billions of euros inpayments to governments around the world. There's no quick fixthough, according to a top official.

"It will continue to be a cat-and-mouse game," Dutch deputyfinance minister Menno Snel said in an interview at his office inThe Hague. "Some companies will find new ways, but I hope therewill be fewer than before."

Each year, about 22 billion euros (US$24 billion) in interest androyalties flows through the Netherlands to low-taxjurisdictions. Letterbox companies—which often have little morethan a postal address in the country—are normally used to transferthe money. To tackle the problem, the government will in 2021impose a withholding tax on such payments to a list of taxhavens.

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