Peter Kavelaars, Professor of Economics of Taxation at Erasmus School of Economics, recently appeared in an article by De Telegraaf. He gives his expertise on the bill on the new box 3 system, which was recently rejected by the Council of State. The box 3 system has been a hotly-debated topic for a significant amount of time now.
One objection to the proposed new Box 3 system is that it will be too complicated for about 1.6 million citizens. They will have to keep their own records and record the actual return on their assets to enable fair taxation. This is already a challenge for the average citizen, and even more difficult for migrant workers, the State Council argues.
Another aspect of the new box 3 system is that, with a few exceptions, investors will pay tax on returns they have earned but not yet cashed in. A capital gains tax - where citizens pay tax only when they have had the return cashed out - makes a lot more sense, according to the Council of State. Kavelaars agrees: ‘I think that is the biggest shortcoming of the new box 3 system. You're not going to tax salary you haven't received yet either. Quite rightly they are shooting that down.' He adds that this profit tax is already deployed in Box 1 and Box 2 as well.
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You can download the full article from De Telegraaf, 5 December 2024, above.
