Worsening problems with rules on tax authorities’ information decisions
Inspectors at the Dutch Tax and Customs Administration can require people to provide more information relating to their tax returns. Esther Huiskers-Stoop from the Tax Law department investigated the rules in place to protect us when we are required to provide information to the tax authorities.
Dr Huiskers-Stoop conducted her investigation on behalf of the Dutch Ministry of Finance. In her report entitled Onderzoek informatiebeschikking 2023 – Als we om rechtsbescherming geven (in Dutch, meaning ‘Investigation into information decisions 2023 – If we care about legal protection’), she concludes that the rules in place are not always effective. There are still problems – including slow procedures and people not knowing what they need to do. The Ministry of Finance is now going to explore potential solutions to those problems.
Worsening problems
‘The problems raised back in 2016 are still there. Some have even worsened,’ Huiskers-Stoop says. ‘The processing time for the whole procedure has increased, leaving taxpayers in limbo for long periods of time. Moreover, it’s often unclear that an information decision has been made. People don’t know what’s expected of them – they often think that information decisions are actually just notifications. That decision letter then just lies around while they’re unaware that the objection period has expired.’
‘There are still problems – including slow procedures and people not knowing what they need to do.’
A huge honour
Huiskers-Stoop submitted her report to Jasper Wesseling, Director General of Tax Affairs at the Ministry of Finance, at the beginning of February. She says, ‘It’s a huge honour to have been trusted with leading such a major investigation.’
Positive responses
The investigation report has now been submitted to the Dutch House of Representatives (site in Dutch). Jasper Wesseling's first finding is a positive one: ‘The report is clear – we currently have a caretaker government that isn’t announcing anything concrete about information decisions at this stage. However, our officials are already beginning to identify and develop problem-solving strategies. They’re also taking steps to prepare potential legislative changes.’
The Dezentjé Act
Under the Dezentjé Act (1 July 2021, Bulletin of Acts and Decrees 2011, 265), the taxpayer can object to and appeal against an information decision that was imposed unlawfully. The Dezentjé Act was extensively assessed back in 2016. In 2018, the State Secretary of Finance proposed a number of strategies to improve the law, but those problems have as yet not been solved. Huiskers-Stoop set to work investigating whether the problems are still there and whether there have been any new developments. Her team examined an enormous amount of data and interviewed dozens of tax experts including tax officials, tax lawyers, tax advisors and judges.
Full investigation report
The full investigation report is available (in Dutch) on the website of the Dutch government: Onderzoek Informatiebeschikking 2023 - Als we om rechtsbescherming geven | Rapport | Rijksoverheid.nl.
Text: Nicole Vijgen
Photo: Dutch Ministry of Finance