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Written by:
Bas Hollenberg


Tax charge on indeterminate income

Some time ago the Court of Appeal found itself adjudicating a case involving someone who during the months of January to October inclusive of the same year had been making cash deposits into two different bank accounts, and according to whom a further cash deposit which had been made had concerned his wages for the month of December that year. 

According to the man he was in the service of an employer. The tax inspector, having double-checked this, found it likely that there was no employment contract, as the “employer” whose name the man had mentioned had been a short-lived company that had since ceased trading. What also did not help was that the withholding tax number included in the man’s payslip was no match for the now defunct company. 

According to the Court of Appeal the tax inspector had had good reason for assuming an “indeterminate income source” scenario to be charged with income tax. The man’s evidence to the contrary had been less than conclusive: having contended that he had borrowed the money from friends and acquaintances, he was subsequently unable to back this up with proof. The only thing he was able to explain away was a sum in the amount of € 8,900 he had received in cash from a patron, for transfer to someone else’s bank account. This resulted in his tax assessment being lowered by € 8,900.

Dutch version: Belasting heffen over onduidelijk inkomen

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