Netherlands

Investor Lobby Plans Legal Action Over Property Tax Plan

Photo: DutchNews.nl

The Dutch investor association VEB take legal action It opposes the government’s decision to use an assumed return of 5.5% to calculate property taxes from 2022 onwards, arguing that the actual figure is -14%.

the government, Lawsuit December 2021 The Supreme Court has ruled that the Dutch tax office was erroneous in using notional figures when calculating the tax a couple must pay on their savings.

The court said the use of nominal amounts violated property rights and European human rights law. 5.5% as a base of assets during the transition period.

The VEB said the 5.5% would again be unprovable in court because the actual return on investment was so different from the figure chosen by the government.

“The Supreme Court said fictitious earnings should be as close to real earnings as possible. 5.5% has nothing to do with real earnings,” VEB director Gerben Everts said. used last year’s central bank figures for investments in bonds, real estate and equities and said the real figure was -14%.

To date, 1,100 VEB members have signed up to help with litigation, and it is now open to non-members.

VEB selects a number of different case studies to clarify the scale and scope of the problem.

capricious

“Don’t get me wrong, you don’t have to feel sorry for your investors.” Everts said“Of course they have to pay taxes on returns. But now they’re being asked to pay for returns they didn’t receive. I’m talking about breach of contract.

The Cabinet plans to introduce a new tax system based on actual income from 2026. In the meantime, a transition regime has been introduced that will continue to use the assumed interest rate, but in 2022 he will distinguish between savings and investments taxed at 0.00%. It is subject to a floating interest rate of 5.5% and debt with an interest rate of approximately 2.3%.

https://www.dutchnews.nl/news/2023/03/investors-lobby-group-plans-legal-action-on-asset-tax-plan/ Investor Lobby Plans Legal Action Over Property Tax Plan

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