Netherlands: Tax inspector collective decision on Box 3 (wealth tax) class-action appeal
Concerning a collective decision on the class-action appeal against the Box 3 tax regime
Concerning a collective decision on the class-action appeal against the Box 3 tax regime
The tax inspector on 4 February 2022 issued a collective decision on the class-action appeal against the Box 3 tax regime (wealth tax) for the years 2017 through 2020, upholding the objections of the taxpayer class.
The Supreme Court (Hoge Raad) previously held that the Box 3 tax regime for the years 2017 and 2018 was contrary to the European Convention on Human Rights (ECHR) and directed the tax inspector to issue a collective decision on the class-action appeal within six weeks. The Supreme Court stated that the regime could be remedied by taxing actual returns rather than fixed returns.
The Lower House of the Dutch Parliament on 2 February 2022 debated the remedial action to be taken in response to these decisions, and the government plans to submit a tentative roadmap for such remedial action to the Lower House around 1 April 2022. The government also indicated that, around 1 May 2022, it will create more clarity about its vision of taxing wealth in the future.
Tax assessments in Box 3
For the time being, no final individual (personal) income tax assessments for the years 2017 through 2021 and other decisions will be imposed on taxpayers who are taxable under Box 3, unless the assessment period threatens to expire or other reasons so warrant.
Until now, provisional individual income tax assessments for the year 2022 have been imposed based on the current statutory Box 3 regime without taking the Box 3 judgment into account. The Deputy Minister of Finance has said that allowance will be made for the Box 3 judgment in finalizing these tax assessments.
Read a February 2022 report prepared by the KPMG member firm in the Netherlands
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.