The Dutch tax office might challenge the tax return your filed, or the administration you keep or a position you have taken. What is it you need to do?
Challenge fiscal position
If the tax office challenges your tax return or administration, it is the tax office making the challenge. That implies they need to proof that it was differently or incorrect. This implies you need to ask the Dutch tax office to explain why they came to the conclusion that a tax return, administration or request was being denied.
Most of the time the Dutch tax office is keen to ask you all kind of questions to build their case. However, in the Netherlands we have a system that you do not need to help the Government in convicting you. In other words, you do not need to give the rope for hanging yourself.
That said, you need to provide details to the Dutch tax office that is the obvious information the tax office can ask. Details such as your administration, contracts etc. You are obliged to provide that if requested for.
A fact is not a fact
Facts, assumptions and claims are part of the challenge the tax office starts against you. But please be informed that a fact is something both parties agree upon. For instance: it always snows with Christmas in the Netherlands. That is indeed not a fact, more false. But if both you and the tax office do not challenge this statement, it has become a fact for the court, even though the court knows this is wrong. The court cannot make any indication this is a wrong fact, as that statement is not part of the argument. It is a fact.
A fact is only a fact when both parties are in agreement it is not under dispute. This does not imply you need to challenge every statement made by the Dutch tax office. It does imply you need to carefully read what the tax office is stating. If the Dutch tax office has a list of facts, do not assume that are indeed facts. Check every fact if that is indeed a fact.
This is how cases are won or lost.
Criminal charge
Example. If the criminal court has sentenced the tax payer for prison time for the sale of drugs, the Dutch tax office could make a claim for the proceeds of these sales.
You would imagine that the conviction makes the claim of the tax office a fact, but the tax court was not able to determine themselves if this person was indeed selling drugs. This court need to come to that conclusion itself before it can be allocated as a fact.
Yes, that implies criminal charges need to be redone. Yes, that implies a person can be innocent for the tax court whereas this person was conflicted for the criminal court. In other words, if the criminal case had the same defense as now in the fiscal case, no prison might have been the case.
One of senior tax experts in this field was Mr Aardema, who was president of the court in Leeuwarden. He stated: you give the facts, then I give you the right.
Orange Tax Services
The Dutch tax office can challenge your tax return, your administration or your stand point. We can assist you in this field. It can be a simple matter or a complex matter.
A simple matter is where you have not reported your Dutch bank balances in the income tax return. The Dutch tax office makes a claim for these balances with the 300% penalty. However, you have the so called 30% ruling and you chose to be regarded a deemed non resident tax payer, hence no assets whatsoever should have been reported.
A complex matter is when you claim to be a non resident tax payer, but you happen to own a house for which you make a claim for the mortgage deduction.
We will be pleased to assist you and we will also inform you when we are not the best party in your specific case to be of assistance. Then we will refer you to the better party.
