2018 Tax plan - Outline of procedural tax law measures and collection

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Outline of procedural tax law and collection measures

2018 Tax Plan - Budget Day (Prinsjesdag)

The following lists the measures proposed in the 2018 Tax Plan in respect of procedural tax law and collection.

30 November 2017

Outline of procedural tax law and collection measures

Dutch version

Back to outline 2018 Tax Plan

Cancellation of voluntary disclosure scheme

The government had proposed to fully cancel the voluntary disclosure scheme as at 1 January 2018. Any voluntary disclosure within two years after filing an incorrect or incomplete tax return could then still result in offense penalties, at least provided it involves wilful misconduct or gross negligence by the taxpayer. The House of Representatives considers this is taking things too far, though. It has thus adopted an amendment as a result of which the voluntary disclosure scheme is only cancelled with respect to non-disclosed income from savings and investments (box 3) that has been generated abroad.

Broader scope for simplified third-party debt orders

Under certain conditions, creditors can issue third-party debt orders to claim amounts owed by third parties to their debtor, or debtor funds or goods retained by a third party. The Dutch Tax Collector can avail itself of this right, too. In some cases the Tax Collector can issue third-party debt orders under simplified procedures, for instance, to attach back wages or account credit balances. Under the simplified procedure no bailiff’s notification is required. The government wanted to open the simplified procedure for other monetary receivables as well, effective 1 January 2019. The House of Representatives has determined, though, that the measure can only become effective when the protected earnings level is respected. As yet it is not clear when that will be.

Suspensive effect of objections cancelled

If tax debtors disagree with enforcement of a writ of execution they can file an objection with the civil court. Such objections have a suspensive effect, so the enforcement of the writ of execution will be suspended until the court has decided on the objection. However, this suspensive effect will be cancelled on 1 January 2018. According to the legislature the procedure for lodging an objection is mostly used to delay the collection process. Although the House of Representatives has agreed to this measure, it has ensured that the legislative amendment will be evaluated after three years.

Broader duty of disclosure in cases of seizure of property by the Tax Administration

Seizure by the Tax Administration of property found on the tax debtor’s premises (bodemrecht) enables the former to sell such property and to deduct the proceeds from the tax debtor’s outstanding tax debts. To avoid circumvention of such seizure, a duty of disclosure for pledgees and other third parties was introduced in 2013. They must inform the Tax Administration of any intentions they may have to perform acts that may cause the property to no longer qualify for such seizure. As it turned out that tax debtors themselves are quite often involved in structures aimed at eroding such seizure by the Tax Administration, the abovementioned duty of disclosure will also apply to tax debtors.

Reintroduction of 10% facility

The qualifying income for allowances under the General Income-Dependent Schemes Act (Algemene wet inkomensafhankelijke regelingen) - used to determine a person’s ability to pay (taxes) - is based on that person’s income for tax purposes during the year. If a person had a tax partner or a co-occupier (the latter is only relevant for the housing allowance) during a certain period, a single allowance is granted per household over that period. The joint qualifying income is used as a basis for determining that allowance. If the tax partnership or co-occupation is terminated during the year, the entitlement to the allowance is still determined based on the joint qualifying income of the taxpayer and their former tax partner or former co-occupier. Any increases in income of the former partner or co-occupier can hence affect the taxpayer’s entitlement to allowance. Last year, the court ruled in two cases that this calculation method implies unequal treatment of equal cases, without a reasonable and objective justification. Due to this case law, it is now proposed to reintroduce the 10% facility which applied up to 1 January 2012. This facility allowed applicants of allowances to request the Tax Administration to disregard increases in income of former tax partners or former co-occupiers, if such increases at least resulted in a 10% rise in qualifying income.

Budget Day 2017 - Webcast

After Budget Day, Deloitte Tax Lawyers discussed the new proposed bills during a webcast, on Wednesday September 20, 2017. You can see the recorded webcast (in Dutch) here.

Deloitte Update Cafés

Throughout the country, Deloitte organizes Deloitte Update Cafés three times a year: meetings in a pleasant setting with an abundance of network opportunities. This is where Deloitte experts will bring you up to speed about current developments in your field of expertise. Recently discussed topics included: cyber security, financial reporting, amendments in tax legislation, risk & reputation, management reporting, Mid-Market trends and developments, and applied data analytics. Deloitte Update Cafés take little time: most consist of two one-hour presentations. 
You will find Deloitte Update Cafés in (or around) Alkmaar, Amsterdam, Arnhem, Breda, Eindhoven, Maastricht, Groningen/Leeuwarden, Utrecht, and Zwolle.

More about Deloitte Update Cafés (in Dutch).

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