200,000 objections to controversial savings tax upheld

Photo: ANP

The cabinet already indicated that it had “little choice”, but has now officially declared the objections of 200,000 savers against the savings tax to be well-founded. “In what form, when and to what extent” they will be compensated, the cabinet only has to find out, according to State Secretary Marnix van Rij of Fiscality.

“We have six months for that, which is also what the law prescribes. We will handle that carefully,” said the minister. He had already announced that he would take that time to find out more.

This is the capital gains tax. People with savings or other assets (such as shares or a second home) in box 3 were taxed on a ‘notional’ return. For savers, that fictional return was much higher than what they earned on their assets. So they actually paid tax on income they didn’t have. Cases have been brought against the savings tax for years. The Supreme Court decided in December that savers in a massive objection procedure are not only right, but also entitled to ‘redress of rights’.

This concerns tens of thousands of objections per year between 2017 and 2020. The cabinet will now work on the “complicated puzzle” of compensation. According to Van Rij, the “principle” remains that the compensation is paid from “the type of tax where the problem arose”, i.e. tax on capital. But, “I have to be really careful about that”, the State Secretary emphasized in the House of Representatives earlier this week.

Now that the objections have been upheld, the most important question is how much compensation the affected savers will receive. In addition, there is also the question of whether others in the same situation – who have not objected – should also be compensated. Moreover, it is still unclear who will have to carry out the major repair operation – the Tax and Customs Administration itself has been struggling with major problems in implementation for years. In any case, the recovery operation will be quite expensive.

200,000 objections to controversial savings tax upheld
Source link 200,000 objections to controversial savings tax upheld

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