Recently, Peter Kavelaars, Professor of Economics of Taxation at Erasmus School of Economics, appeared on a BNR Nieuwsradio broadcast to give his view on the recent Supreme Court ruling. The Supreme Court ruled that investors who overpaid tax on their returns for years should be compensated for it.
The current system assumes that everyone receives the same return on their investments. According to Kavelaars, this is not a problem if this is assumed for a year, but as this system has been in place since 2000, major inequalities have now emerged.
Taxing real income from assets would make a lot more sense than assuming a notional return, the professor argues. However, the tax authorities argue that that system is too complex to implement. Yet, it is possible in other countries, Kavelaars argues. With the Supreme Court ruling, the new system seems to become reality after all, as taxpayers are now allowed to file claims if their return is lower than the notional return.
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You can listen to the full episode of BNR Nieuwsradio, 6 June 2024, here.
