Other measures

Co-parenting allowances

As of 1 January 2024, there will be a simplification in the method of determining whether co-parenting is entitled to allowances. There is no longer any need for an equal distribution at any time in the year. On a calendar-year basis, it is sufficient for the child to have an almost similar relationship in both households. This is at least the case if the child stays with each of the parents for 156 days (3 days times 52 weeks) per calculation year.

• Tip! In individual cases, the Benefits Division still has room to offer a customised service.

Review of definition of offender delayed

An offender is subject to an administrative penalty. In 2014, the concept of offender was expanded to include persons who consciously assist others in failing to comply with tax or benefit obligations. It specifically concerns the perpetrator, the instigator and the accomplice. The review of this expansion does not appear to be possible and is therefore postponed until 1 January 2029. After this date, this expansion will automatically lapse unless a supplemental legislative proposal is adopted.

• Take note! This provision makes it possible to impose an administrative penalty on persons who consciously assist others in failing to comply with their tax or benefit obligations.

Legal protection in case of tax interest

The legal protection is being improved for tax interest rulings in the case of provisional income tax or corporation tax assessments. A period of six weeks to lodge an objection is guaranteed.

Interest on benefits

The same scheme of remuneration and payment of tax interest applies for benefits as for income tax and so too the same rate of 6%. With retroactive effect to 1 July 2023, the interest payable by persons entitled to supplementary benefits will be reduced to 4%. If the persons entitled to supplementary benefits is entitled to interest, this will only be reduced from 6% to 4% as of 1 January 2024.

Hardship clause in the Collection of State Taxes Act

At present, there is no possibility of derogating from the rules laid down by law in the event of unforeseeable and very unreasonable consequences for the collection of taxes. It is for this reason that a hardship clause was introduced in the Collection of State Taxes Act (Invorderingswet). This gives the Minister of Finance the authority to accommodate taxpayers in cases where the Collection of State Taxes Act leads to ‘extreme unfairness’. In such case, a taxpayer should submit a request for application of the hardship clause.

• Take note! The hardship clause is only intended for special cases or groups of cases where application of the law leads to extremely unreasonable consequences which were not envisaged in the coming about of the legal provision.

Compensation on violation of fundamental right

To determine which tax returns had to be checked manually, the Tax Administration applied a risk selection in which non-tax grounds were also used. This approach has infringed the fundamental rights of taxpayers and must be compensated for, as long as the Tax Administration cannot prove that selection was made on tax grounds. The basic assumption is that those taxpayers do not have to request such compensation themselves. This compensation will be untaxed and will not be offset against any outstanding tax liabilities.

Payment of legal costs

Many notices of objection regarding WOZ and BPM are submitted by authorised representatives on a no cure no pay basis. To reduce the resulting workload, three measures have been proposed. The fees to cover the costs of legal assistance granted for a professional third party will be reduced. The amount of compensation for immaterial damages resulting from exceedance of the reasonable period is also laid down by law. Finally, it is provided that payments resulting from a decision on an objection or a judgment on an appeal will only be made to a bank account in the name of the party concerned.

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