Temporary relaxation of voluntary disclosure scheme
Publication date 05 September 2013
As of September 2, 2013, taxpayers who filed an incorrect or incomplete tax return in the past can make amends without having a penalty imposed. The voluntary disclosure scheme is temporarily being relaxed until July 1, 2014.
The voluntary disclosure scheme
The voluntary disclosure scheme provides taxpayers the opportunity to report income (for example, foreign bank accounts) to the Dutch Tax and Customs Administration that they initially failed to report. Taxpayers who give full disclosure before they could reasonably suspect that they were being investigated by Dutch Tax and Customs Administration or the Fiscal Intelligence and Investigation Service and Economic Investigation Service (FIOD/ECD), must pay the tax owed plus interest. If they give full disclosure before July 1, 2014, no penalty will be imposed pursuant to the voluntary disclosure scheme.
After July 1, 2014
After July 1, 2014, the voluntary disclosure scheme will return to its previous form, i.e. as it applied before September 2, 2013. After filing an incorrect or incomplete tax return, or failing to file a tax return that should have been filed, a taxpayer has two years to voluntarily correct this mistake without a penalty being imposed. After this period has expired, voluntary disclosures will no longer be possible without the imposition of a penalty. During the period July 1, 2014 until July 1, 2015, the penalty will amount to 30% of the tax that was wrongly not levied. If the income not reported is savings and investment income, the penalty will be 10% of the legal maximum penalty of 300%. These are the same percentages that applied before September 2, 2013.
After July 1, 2015, the penalty will be significantly increased: to 60% of the tax that was wrongly not levied, or 20% of the legal maximum penalty of 300% in respect of savings and investment income.
We strongly advise you to seek assistance from one of KPMG & Meijburg & Cos tax specialists when filing a tax return under the voluntary disclosure scheme.