Objection to “Box 3” levies

Whenever the Tax and Customs Administration finds itself fielding a barrage of objections on a single theme, it has the option of dealing with all of these objections collectively provided the matter in dispute is identical between them. Matters in dispute that do not substantively come under the scope of the legal issue in question will be dealt with individually rather than collectively.

The Netherlands Tax Payers’ Union has called on members of the public to lodge objection to the investment yield tax assessment for 2017. As it is the State Secretary for Finance’s expectation that large numbers of tax payers will heed this call, he has conferred “class action” status upon the notices of objection in question. The total number of notices of objection filed (from the second quarter of 2014 onwards) in connection with the “Box 3” taxation for the years up to and including 2016 had reached the 30,000 mark by the end of the first quarter of the current year. The Tax and Customs Administration has moved for a stay of some 18,500 of these because of the ongoing collective objection proceedings. Owing to the modification of the investment yield taxation mechanism with effect from the first of January 2017, the outcome of the ongoing proceedings for the years up to and including 2016 must not be taken as the be-all and end-all where it concerns the objections to income tax assessments raised in relation to 2017 and subsequent tax years.

The State Secretary in response to Lower House questions has explained that investment yield tax tweaks are easily implemented where they remain confined to amounts and percentages. Systemic changes are more radical and will therefore take more time (and effort) to be completed.

To read: Notices of objection to “Box 3” taxation

Dutch version: Bezwaarschriften 2017 box 3