In a letter to the Lower House, the Ministry of Finance announced that the Dutch Revenue has negotiated with an informant who provided information, in exchange for payment, on hundreds, according to the Dutch Revenue, of Dutch citizens who have not declared their bank balances from savings/accounts held abroad. A reward was agreed upon with the informant that is dependent on the extra revenue for the treasury. The Dutch Revenue expects that this information will lead to substantial additional assessments and the imposition of penalties.
Reward
The Dutch Revenue has already received information on foreign bank accounts held by Dutch citizens. In 2001, the Belgian tax authorities passed on information they had received on KB-Lux Bank account holders. The German tax authorities exchanged information on Dutch account holders with money in secret bank accounts in Liechtenstein. The German tax authority had paid a substantial amount for this information that was said to have been stolen by a former employee of the bank in Liechtenstein.
It is not clear how the informant came by this information; it concerns bank balances in banks located in at least two European countries. If this information was not obtained in a legal manner and the Dutch Revenue then pays for it, the question arises whether the Dutch Revenue can actually use it as it is. The general rule is that the Dutch Revenue may not use information that is obtained in a manner that runs so counter to what might be expected of government acting properly, that the use of this information must be considered as inadmissible. The letter to the Lower House appears to indicate that the Dutch Revenue has already sent the taxpayers letters with questions based on this information.
Voluntary Disclosure Program
If a taxpayer still wishes to declare any income to the Dutch Revenue that has wrongfully not been declared (such as bank accounts abroad), they may, at present, make use of the voluntary disclosure rules. Until January 1, 2010, taxpayers who provide full disclosure of their affairs before they could reasonably suspect that the Dutch Revenue or the FIOD/ECD may be investigating them, must, of course, pay all of the tax owed with interest, but the voluntary disclosure rules mean that no penalty will be imposed. Taxpayers who have already received a letter with questions know, however, that the Dutch Revenue is on their trail, and therefore, that they may not make use of the voluntary disclosure program.
Effective from January 1, 2010, a taxpayer has a period of two years after incorrectly completing, or failing to complete, a tax return, in which he or she may voluntarily improve the tax return, without risking a penalty. Voluntary improvement without being liable to a penalty will not be possible once the two-year deadline had passed. The level of penalty after January 1, 2010, for a voluntary disclosure after the two-year deadline is not yet known. In conclusion, it remains advisable to have a KPMG Meijburg & Co specialist make use of the voluntary disclosure rules.