The Council of Ministers has approved a bill submitted by the Deputy Minister of Finance Weekers, offering EU-countries the possibility to provide more support in the collection of tax debts. This bill is an implementation of the EU-directive adopted in 2010 on this subject. The bill has also been submitted on behalf of Minister Verhagen of Economic Affairs, Agriculture and Innovation and Minister Donner of the Interior and Kingdom Relations.
EU-countries are, in principle, bound by their territorial boundaries for the collection of tax debts. The Ministry of Finance states in its press release that it has become increasingly difficult to collect taxes at national level due to the increased mobility of people and capital. It is therefore possible for the Dutch government to lose revenue as a result of a taxpayer leaving the country or transferring its capital abroad and not paying its tax debt. This is why the current regulations for the collection of tax debts within the EU have been amended.
Expansion and strengthening of current legislation
The bill aims to strengthen current legislation for the collection of tax debts within the EU and to expand its scope. For example, it is currently impossible for municipalities to collect their debts, such as an unpaid parking tax, from a taxpayer who has left the country or has transferred his capital abroad since receiving the tax assessment. This bill aims to provide the authorities with the means to collect tax abroad. Furthermore, the bill proposes to improve the technical means of communication and procedures to seize up on current developments.
Bill first sent to the Council of State
The Council of Ministers has approved the proposed legislation to be submitted to the Council of State for advice. The bill’s content and the Council of State’s recommendations will be made public when the bill is introduced to the Lower House. The bill is an implementation of a Council of the European Union Directive and will take effect as of January 1, 2012.