Allen & Overy (A&O) has hired a leading tax team from big four accountant Ernst & Young in Amsterdam to boost the London giant's Dutch practice.

The team is led by respected corporate tax partner Olaf van der Donk who brings with him four other tax lawyers.

Van der Donk, who headed up Ernst & Young's Dutch M&A tax practice, will joins A&O as a partner with his team coming in at associate level.

Although the group are all qualified lawyers they previously worked for the tax division of Ernst & Young, rather than its allied law practice Holland van Gijzen.

The hires are a significant addition for A&O as the firm has had a relatively small tax Dutch practice despite its 1999 merger with the Amsterdam office of local top firm Loeff Claeys Verbeke.

The addition of the new team will give the UK firm four tax partners and 13 associates in Amsterdam.

In addition to its importance as a transactional support practice, the Netherlands' status as a low tax jurisdiction for foreign companies has increased demand for senior tax lawyers.

A&O Amsterdam senior partner Sietze Hepkema said: "This shows how attractive it is for tax lawyers to work together with lawyers and civil notaries in an integrated fashion in our corporate law practice."

In the past A&O has worked on several major Dutch tax matters including the acquisition of World Online by Tiscali.

Other clients that instructed A&O's Amsterdam tax practice include the Vienna and New York Stock Exchanges and Germany banking group Dresdner.

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