The Council of State warns of major enforceability problems for the tax authorities due to the temporary box 3 tax act. That scheme allows taxpayers to prove a lower return on their assets. The implementation of that tax act may not be too bad, argues Peter Kavelaars, Professor of Economics of Taxation at Erasmus School of Economics, in an interview with BNR Nieuwsradio.
The scheme is intended to give taxpayers who may have overpaid taxes based on fictitious returns since 2017 the chance to prove their actual returns retroactively. The State Council's criticism mainly focuses on implementation problems at the Tax Administration. Kavelaars, however, comments on that criticism. He points out that in most years, the actual return on shares was actually higher than the notional return on which taxation is based. ‘Only in 2022 was the return lower. In all other years, it seems that taxpayers have no interest in counter evidence,’ Kavelaars said. He finds it remarkable that the Council of State does not mention this aspect.
Despite the criticism, Kavelaars understands the concerns about the enforceability of the scheme. A new tax system, in which tax is levied on actual returns achieved, is still years away. Its introduction has now been postponed to 2028.
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You can listen to the full article of BNR Nieuwradio, 17 February 25, here.
