2021 Tax plan - Outline of procedural tax law and collection of taxes

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Outline of procedural tax law and collection of taxes

2021 Tax Plan - Budget Day (Prinsjesdag)

The following lists the measures proposed in the 2021 Tax Plan in respect of procedural tax law and collection of taxes.

17 September 2020

Outline of procedural tax law and collection of taxes

Dutch version

Back to outline 2021 Tax Plan

Improving legal protection and practicability of allowances

A number of measures are being taken to improve practical legal protection and reinforce the human dimension. One of the things made possible in time will be the write-off of debts in income related schemes. What’s more, previous statements by the Council of State on the proportionate determination of allowances and mitigating the recovery of allowance will be codified.

Another government proposal will give people the opportunity to express their views before final decisions are taken. Moreover, additional safeguards for the legal protection of citizens will be introduced. Employees of the Tax Administration/Allowances will have to go through more steps involving more checks before allowances can be stopped or fines imposed.

Finally, the partner concept will be changed. Married partners right now continue to be allowance partners when one of them is admitted to a care or nursing home. This may have adverse financial consequences, because the remaining partner will then no longer be eligible for, e.g., child care allowance. Another measure is to no longer consider a partner to be taken into account for the whole allowances year, but from the first month after the partnership has been entered into.

Electronic garnishee order by the Tax Administration

Effective from 1 January 2021, a bailiff will be obliged to electronically impose a garnishee order under certain circumstances. The Tax Administration's implementation test has shown that the introduction of electronic garnishee orders is only feasible for the Tax Administration in the long term, and in any case not on 1 January 2021. Since the coming into force provision of the Act involved erroneously failed to distinguish between the various parties using the garnishee order, the Collection of State Taxes Act 1990 now regulates that the obligation to impose an electronic garnishee order does not, for the time being, apply to the implementation of an enforceable order by the Tax Administration.

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