Voluntary disclosure undeclared assets from 2010
It is still possible to take advantage of the voluntary disclosure scheme after 1 January 2010. Currently a penalty of 15% is imposed. However, State Secretary De Jager has announced plans to increase this pecentage. The penalty will not be imposed if voluntary disclosure is made within two years of the incorrect tax return.
Failure by a Dutch resident taxpayer to declare assets, e.g. secret bank account or a second home, by either deliberately omitting information or failing to provide correct information on the Dutch income tax return, constitutes a criminal offence in the Netherlands. In recent years the Dutch Tax Inspectorate has been actively seeking out undeclared assets located abroad. Dutch private residents with foreign assets that have not been declared on their Dutch tax return, have the chance to make use of the so-called ‘voluntary disclosure scheme’. The scheme can also be used to declare assets held in this country that were not disclosed in previous tax returns.
What does the voluntary disclosure scheme entail?
Persons who report to the Tax Inspectorate in good time and settle the taxes due, by filing full and correct information, can avoid criminal prosecution and a hefty penalty. The penalty can mount up to 150%, and in the case of repeat offences 300%.
However, a prerequisite is that the Tax Inspectorate has not already discovered the undeclared assets. According to the Tax Inspectorate, this is the case if in the actual situation:
- no questions have been raised by the Inspector concerning foreign assets;
- the Inspector has not announced any tax audit, during the course of which foreign assets could be discovered;
- the Fiscal Information and Investigation Service has not reported that an investigation is being conducted in connection with foreign assets.
Voluntary disclosure as from 2010
Up until 31 December 2009 taxpayers could make use of the voluntary disclosure scheme, without incurring any tax penalty. As from 1 January 2010 it is still possible to take advantage of the voluntary disclosure scheme. The current rate of the penalty imposed on the supplementary assessment is 15%. However, Secretary of State for Finance, De Jager, has announced that this percentage rate is to be increased in the near future. A penalty will not be raised if voluntary disclosure is made within two years of the incorrect income tax return.
How can VMW Taxand be of help?
VMW Taxand assists taxpayers with filing the voluntary disclosure return. It is vital that this is done with care and accuracy. We are also happy to assist in getting your financial situation back on track. We can supervise the entire process for you, which also includes maintaining contact with the Tax Inspectorate.
For further information, with no obligation, contact Roelof Vos (roelof.vos@vmwtaxand.nl), Chris van Wijngaarden (chris.vanwijngaarden@vmwtaxand.nl) or Martijn Wesselink martijn.wesselink@vmwtaxand.nl).
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