What is Box 3 (Box 3) in the tax system, we figured out through a series of webinars in May-June 2021 (link: https://www.youtube.com/watch?v=DEjhKCh13dc). In particular, we raised the issue of "fictitious capital gains" and talked about the need to revise the tax legislation regarding the tax on capital income and real estate.
Supreme Court ruling
In August 2021, massive objections were received from taxpayers to the tax service. Litigation was initiated.
At the end of last year The Supreme Court ruled that a large group of taxpayers are entitled to a refund from the tax authorities. This applies to Dutch people who have bank savings or other assets such as shares or a "second home" and who paid taxes on them between 2017 and 2021. That is, we are talking about compensation for overpaid taxes on Box 3.
A costly flaw in tax law
The tax authorities base the assessment of the amount of tax on fictitious, and not on the actual income received. At the same time, in recent years, bank savings have made little or no return due to low interest rates, and many savers have paid too much in taxes.
In footage from February 14, 2022 (link: https://www.youtube.com/watch?v=-1uO0v2lDbw&t=26s) we dealt with possible mechanisms for paying compensation for overpaid tax. We also investigated what changes await Box 3 - options for eliminating a flaw in tax legislation, as a result of which an illegal overpayment of taxes arose.
And finally, the news expected by many - the government announced payment of compensation to affected taxpayers from July 1. It is still difficult to estimate the costs of such payments - the amount that will have to be allocated from the state budget will be from 2,4 billion to 11,7 billion euros.
Whom does it concern?
As previously noted, a Supreme Court ruling could target one million taxpayers. It applies to taxpayers who received little or no return on their assets between 2017 and 2021, but were required to pay taxes at the same rate as if they received this profit.
It is not yet clear who exactly will receive compensation and how large this amount will be. Secretary of State for Revenue, Van Rij, first wants to decide with the House of Representatives which option is best for calculating compensation. Two options are being worked out.
Approximately 60 people filed formal objections to the Box 000 tax for the tax years 3 to 2017. Cabinet has not yet decided if this group will be expanded. Van Rey is working closely with the House of Representatives to develop compensation mechanisms. The more taxpayers can claim the refund of overpaid taxes, the more it will cost the state budget.
Van Rey emphasizes that not everyone will be compensated: “They will be mostly contributors. We are not talking about investors who sometimes pay too little tax anyway.”
Can you specifically claim compensation for the Box 3 overpayment of tax? To answer this question, firstly, follow the news, and secondly, contact a tax consultant. Nalog.nl experts are always at your service!
Publication Date: 19.04.2022
