Global

Details

  • Service: Tax, International Executive Services, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 8/23/2012

The Netherlands - Proposals to address allowance fraud 

August 23:   Addressing “allowance fraud” remains a priority for the Dutch Cabinet.

In a letter to the Lower House, the Deputy Minister of Finance outlined new measures that the government intends to introduce to address tax allowance fraud, including:


  • Enhanced enforcement policy
  • An increased penalty of 150% for repeat fraud offenders
  • Possible criminal prosecution for “serious cases” of fraud

Because allowances are based on an estimate, the Dutch Revenue is also looking into how it can help those taxpayers entitled to allowances to better estimate their income, as well as actively informing them if an estimate may not be accurate.


The income at year-end may turn out to be greater than was estimated, which means that there is no entitlement to an allowance. The more accurate the estimated income, the less chance there will be that taxpayers would receive either too much or not enough allowance. If, for example, it appears that someone has wrongly received a rent allowance (huurtoeslag) for two consecutive years, then this can also be suspended.


Another proposed measure involves imposing interest as part of the allowance that will have to be repaid.


Read an August 2012 report prepared by the KPMG member firm in the Netherlands: Tackling allowance fraud remains Cabinet priority




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