The Netherlands has ended its resistance to EU measures aimed at tightening up the way companies use European parents and subsidiaries to reduce taxes, the NRC reports on Wednesday.

Junior finance minister Eric Wiebes has written to parliament, urging MPs to support the Dutch position to amend the current regulations and incorporate changes proposed by Germany and Britain.

‘The cabinet puts a great deal of value on the continuation of international efforts against tax avoidance,’ Wiebes wrote in the briefing. ‘That is why the cabinet supports this approach to tackle abuse of the parent-subsidiary regulations.’

European finance ministers wanted to vote on the changes three weeks ago but this was delayed on the request of several countries, including the Netherlands.

The Dutch said the measures were too wide and would also have an impact on legitimate operations. The issue will now be discussed in Brussels next week, the NRC says.

The aim of the rules is to prevent double taxation but companies have been quick to take advantage of differences in local taxation rates to reduce their overall tax bill. The revised guidelines give members states more power intervene, the NRC says.