2023 Tax plan - Outline of procedural tax law and collection of taxes

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Outline of procedural tax law and collection of taxes

2023 Tax Plan - Budget Day (Prinsjesdag)

The following lists the measures proposed in the 2023 Tax Plan in respect of procedural tax law, collection of taxes and supplementary benefits.

29 November 2022

Outline of procedural tax law and collection of taxes

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Mass objection proceedings plus

The scope of mass objection proceedings is extended to applications for ex officio income tax reductions. If the decision on a large number of applications requires the same question of law to be answered, an instruction on mass objection proceedings may be issued, both for applications for ex officio reductions and for objections, to the extent these concern the question of law. After the Supreme Court has answered the question of law, a collective decision will rule on the applications and objections filed. The advantage of this process is that the Tax Administration need not first deal with the ex officio reduction requests filed before mass objection proceedings are possible.

Delegation provision regarding interest on overdue tax

A delegation provision will be introduced in the Collection of State Taxes Act (Invorderingswet) to empower the government to designate, by order in council, cases in which charging interest on overdue tax must be disregarded. The rationale is that the exceptional circumstances of such cases would make it unreasonable to charge interest on overdue tax. This involves situations where the legislator feels taxpayers cannot be blamed for late payments. One example would be 2022 provisional income tax assessments that include box 3 income. As it had not yet been possible to take account of the Supreme Court’s case law on box 3 when making those assessments, the legislator decided of its own accord not to enforce collection. The legislator considers it unreasonable in such cases to as yet charge interest on overdue tax if payment takes place after the expiry of the statutory payment term.

Webcast Tax Plan

Corina van Lindonk, Aart Nolten and Eddo Hageman discussed Tax Plan 2023.

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Increase in child budget

The child budget is an income-dependent allowance for the costs of children, designed to support low and middle-income families. The allowance distinguishes between household types and single parents receive a higher child budget. Considering the current purchasing power trends, there is a need to prevent families from dropping below the poverty line. This is the reason for a structural increase (of part of) of the child budget on top of the inflation correction. One of the measures involves aligning the maximum amount for a second child with that of a third or more children. Furthermore, the amounts per child are increased by EUR 356, while the addition for single parents is also increased by this amount.

By contrast, the income support for state pensioners (the ‘IOAW’, the Old and Partially Disabled Unemployed Workers Income Scheme Act) will be abolished in 2025. The government states that this is linked to the sharp increase in the minimum wage from 1 January 2023 (8.05%), which will also affect state pension benefits.

No benefit cuts when taking in Ukrainian refugees

The government proposes a legislative change to avoid benefit cuts for individuals who have opened their homes for displaced Ukrainians. Benefit cuts could result from strict application of the current rules, which stipulate that the joint household income determines the amount of benefits to be received. Joint income also includes the income or assets of a co-occupiers. The government aims to rule out that the income position of accommodated Ukrainian refugees would be included in the calculation of the benefits.

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