When the management restrictions are violated (i.e. the limited partner acts as if it was the general partner), the Dutch Commercial Code dictates that the limited partner should be held accountable to all creditors of the partnership, even if the liabilities cannot be linked to the breach (for example, even if the liabilities already existed before the breach). The Supreme Court ruled that the sanction imposed should be in proportion with the breach. The accountability should therefore be limited to the liabilities of the partnership that are linked to the breach.
📢 Tax compliance and digitalization in 2025
In Europe, tax compliance is becoming more digital, and governments are introducing more e-filing systems. In the Netherlands, for example, the implementation of the EU's digital VAT system (e-invoicing and real-time reporting) will change how accountants handle...