The Netherlands continues the policy of excluding so-called shareholder costs from the new charge on the members of the group. The costs inherent in a corporation as a legal form and the costs associated with holding shares in other companies are mutually considered shareholder costs. As a general rule, these expenses only benefit the corporation itself and therefore cannot be charged to the members of the group. From the point of view of the group members, membership in the group itself may certainly represent some value, but this alone does not justify separate remuneration, unless there is an underlying service, such as. B a license to use the name or brand, or a bank guarantee for obtaining external financing. If the “cost-plus” method is applied, the application of the efficiency test and the comparative evaluation of profit accounting can result in significant administrative burdens, which can easily be considered too heavy, especially when it comes to low-value services to add up value. The OECD has recognized this problem and has introduced the possibility of using a simplified method for low-value-added services (or “LVAS”). The heart of this simplified method is that it is not necessary to apply the performance test for qualified LVAS in its entirety. Intragroup services must be assessed accordingly and the associated costs must be distributed among the group members in accordance with the group`s duration principle. In order to determine the intragroup services actually provided, it is necessary to apply what is called the “performance test”: the activity (service) must offer the taker an economic or commercial value to improve or maintain its commercial position, for which he would normally be willing to pay a salary or to do the service itself. Activities carried out exclusively because of the participation of the central or regional headquarters (shareholder) in one or more other members of the group and the activities inherent in the very existence of a corporation cannot generally be considered intragroup services and cannot, by their nature, be charged to the members of the group. These costs are commonly referred to as “shareholder expenses.” That`s the end of it. This agreement may be terminated in whole or in part by the appropriate written announcement of one of the parties, which may not be less than 30 days.

Termination is reasonable for the purposes of this paragraph if it expresses its intention to terminate the joint use of a service after the expiry of the current contract for that service, except that if the Funds and the Union are required to terminate a third party under this agreement, the terminating party gives the other parties to this agreement at least twice the period of termination of the third party. If they meet certain criteria, multi-employer benefit plans may share certain expenses, certain institutions and administrative staff without violating the transaction rules prohibited under ERISA. Below, courtesy of Jules Levine, Esq. is a model agreement can use plans to formally document their agreement. Definition of the appropriate cost-sharing mechanism – Step by step This agreement does not limit the ability of those who have provided services to the Funds and/or the Union to spread the fees for these services between these services on the basis of services actually provided, nor to deter funds and the Union from paying royalties on the basis of such an allocation.