{"id":114694,"date":"2025-10-06T11:57:37","date_gmt":"2025-10-06T11:57:37","guid":{"rendered":"https:\/\/my.legal500.com\/guides\/?post_type=comparative_guide&#038;p=114694"},"modified":"2025-10-09T09:40:33","modified_gmt":"2025-10-09T09:40:33","slug":"the-netherlands-tax-disputes","status":"publish","type":"comparative_guide","link":"https:\/\/my.legal500.com\/guides\/chapter\/the-netherlands-tax-disputes\/","title":{"rendered":"The Netherlands: Tax Disputes"},"content":{"rendered":"","protected":false},"template":"","class_list":["post-114694","comparative_guide","type-comparative_guide","status-publish","hentry","guides-tax-disputes","jurisdictions-the-netherlands"],"acf":[],"appp":{"post_list":{"below_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Greenberg Traurig LLP<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2023\/10\/logo-1.png\"\/><\/span><\/div>"},"post_detail":{"above_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Greenberg Traurig LLP<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2023\/10\/logo-1.png\"\/><\/span><\/div>","below_title":"<span class=\"guide-intro\">This country specific Q&amp;A provides an overview of Tax Disputes laws and regulations applicable in The Netherlands<\/span><div class=\"guide-content\"><div class=\"filter\">\r\n\r\n\t\t\t\t<input type=\"text\" placeholder=\"Search questions and answers...\" class=\"filter-container__search-field\">\r\n\t\t\t<\/div>\r\n\r\n\t\t\t\r\n\r\n\r\n\t\t\t<ol class=\"custom-counter\">\r\n\r\n\t\t\t\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is it necessary for a taxpayer to register with the tax authority? Are separate registrations required for corporate income tax and value added tax\/sales tax?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes, taxpayers must register with the Dutch tax authorities (<strong>DTA<\/strong>) separately for corporate income tax (<strong>CIT<\/strong>) and value added tax (<strong>VAT<\/strong>), if they would be subject to such taxes in the Netherlands. The registration for both these taxes can be completed through one single form, and upon incorporation a default registration is usually carried out by the DTA, in conjunction with the registration with the Dutch chamber of commerce (<em>Kamer van Koophandel<\/em>) and based on information shared with the chamber of commerce on behalf of the taxpayer.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">In general terms, when a taxpayer files a tax return, does the tax authority check it and issue a tax assessment \u2013 or is there a system of self-assessment where the taxpayer makes their own assessment which stands unless checked?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Netherlands has two systems for determining taxes for a taxpayer: assessment taxes (<em>aanslagbelastingen<\/em>) and self-assessment taxes (<em>aangiftebelastingen<\/em>). For assessment taxes, a taxpayer must file a tax return, which is then usually checked by the DTA and followed by an assessment specifying the tax payable. With self-assessment taxes, the taxpayer files a return and subsequently remits the amount due as indicated on the return filed. These returns and payments are definitive, unless they are later audited by the DTA, and subject to a correction.<\/p>\n<p>Examples of the Dutch assessment taxes are the CIT and personal income tax. In principle, taxpayers must file a tax return for these taxes once every year.<\/p>\n<p>Some examples of the Dutch self-assessment taxes are the VAT, wage tax and dividend withholding tax. VAT returns, for example, should be filed quarterly, monthly or annually, and must then be paid by the taxpayer.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Can a taxpayer amend the taxpayer\u2019s return after it has been filed? Are there any time limits to do this?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>For CIT returns, this is generally possible until the final assessment has been imposed. After this, penalties and interest may apply under certain conditions. A final assessment must be imposed within three years following the day after filing the tax return.<\/p>\n<p>For VAT returns, a supplementary VAT return (<em>suppletie-aangifte<\/em>) can be filed, within five years following the relevant tax year. This supplementary VAT return may be used to correct errors or omissions in previously filed VAT returns. It allows taxpayers to adjust their VAT liability or claim additional input VAT that they may have missed in their original filings.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Please summarise the main methods for a tax authority to challenge the amount of tax a taxpayer has paid by way of an initial assessment\/self-assessment.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Tax Audits\/information requests: the DTA can conduct audits to review a taxpayer&#8217;s financial records, transactions, documentation requirements and tax returns. These audits can be random or targeted based on specific concerns, industry focus or risk factors. During a tax audit, tax inspectors may request any information and documentation relevant to ascertain the taxpayer\u2019s tax position, interview the taxpayer, and assess the accuracy of the reported information. Taxpayers are legally obligated to provide requested information within a specified timeframe.<\/p>\n<p>Additional assessment: If the DTA believes that the initial assessment or self-assessment is incorrect, an additional assessment (<em>naheffingsaanslag<\/em>) can be issued under certain circumstances. The taxpayer has the right to object to a reassessment and provide evidence to support their position. An additional assessment should, in principle, be issued within five years after the relevant tax year. However, in certain circumstances, the five-year period is extended to twelve years. For assessment taxes, the tax inspector can only impose an additional assessment if he obtains knowledge of a so-called \u201cnew fact\u201d that he did not and could not have known at the moment of imposing the assessment.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the time limits that apply to such challenges (disregarding any override of these limits to comply with obligations to relief from double taxation under a tax treaty)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>For self-assessment taxes, the DTA may challenge tax returns filed by issuing an assessment that deviates from the tax return filed. Such assessment should be issued within three years following the last day of the relevant tax year. If an extension for filing the tax return has been granted by the DTA, then such extension period is added to the three years.<\/p>\n<p>An additional tax assessment should be issued for return-based taxes within five years after the end of the relevant tax year (again, unless an extended period of twelve years applies). Also in this case, any extension period granted by the DTA should be added to the five-year period.<\/p>\n<p>For self-assessed taxes, an additional tax return should be issued within five years after the year in which the taxable event occurred.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How is tax fraud defined in your law?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>According to Dutch law, tax fraud is a form of fraud in which intentionally incorrect or incomplete information is provided to obtain an unlawful tax advantage.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How is tax fraud treated? Does the tax authority conduct a criminal investigation with a view to seeking a prosecution and custodial sentence?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Tax fraud is a criminal offense. Under certain circumstances, a case may be escalated into a criminal investigation carried out by the public prosecutor\u2019s office and the DTA\u2019s investigative unit (FIOD). Parties considered to assist in fraud may also be subject to such treatment. Repercussions include the levying of a penalty but also imprisonment and\/or community service.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">In practice, how often is a taxpayer audited after a return is filed? Does a tax authority need to have any justification to commence an audit?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In practice, CIT and VAT returns are primarily audited when significant amounts are involved or if there are other elements in the return that give the DTA a reason to scrutinize it further. Additionally, random sampling audits may take place. Historically, the DTA sought to audit every taxpayer once every five years, but recently tax audits have certainly become less frequent on average.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does the tax authority have to abide by any standards or a code of conduct when carrying out audits? Does the tax authority publish any details of how it in practice conducts audits?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes, the rights and obligations of a taxpayer and the rules that the DTA must adhere to during a tax audit are described in Dutch law. The handbook for control procedures and the code of conduct for the DTA (<em>Handboek Controle Belastingdienst<\/em>) have also been published. This provides insight into the DTA\u2019s conduct rules during tax audits. In addition, the DTA are generally subject to the general principles of good governance, which include the principles of equality, due care and proportionality. Lastly, the DTA is divided into various \u201cknowledge groups\u201d focussing on different sectors. These knowledge groups publish knowledge group positions (<em>Kennisgroepstandpunten<\/em>) ensuring uniform interpretation and application of tax law. These positions are not legally binding but may be considered persuasive or at least helpful in a court proceeding.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does the tax authority have the power to compulsorily request information? Does this extend to emails? Is there a right of appeal against the use of such a power?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In principle, the DTA have the authority to obtain all information and documentation that may be relevant for the assessment of taxes. If a taxpayer believes that certain information does not fall under that obligation, it can refuse to provide this information and wait until the DTA issues an information decree (<em>informatiebeschikking<\/em>). Against such an information decree, the taxpayer can object, and if the objection is not followed, file an appeal with the appropriate court which would then determine whether the information is indeed relevant for the assessment of taxes and, therefore, should be provided by the taxpayer or not.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Can the tax authority have the power to compulsorily request information from third parties? Is there a right of appeal against the use of such a power?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes, the DTA have the power to compulsorily request information from third parties under certain circumstances. This authority is granted to assist in tax investigations and audits. As under Q10, the DTA can request this information if they believe that such information is relevant to determining a taxpayer&#8217;s tax liability or compliance.<\/p>\n<p>Companies are legally obliged to keep their administration for seven years and can thus be required to cooperate in such a third-party investigation. Such parties have the same rights as regards objection and appeal through an information decree as the taxpayer itself (see Q10).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is it possible to settle an audit by way of a binding agreement, i.e. without litigation?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>An audit may lead to an additional assessment (<em>naheffingsaanslag<\/em>) \u2013 with or without penalties and interest, depending on the reason for underpayment of tax in the first place. Any difference of opinion between the taxpayer and the DTA may be solved by entering into a settlement agreement, which is a reciprocal agreement between taxpayer and tax authority. Alternatively, litigation could follow if the taxpayer does not agree with the additional assessment.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">If a taxpayer is concerned about how they are being treated, or the speed at which an audit is being conducted, do they have any remedies?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Incorrect treatment by the DTA can, based on the aforementioned principles of good governance, be reported to the national complaints investigator (<em>Nationale ombudsman<\/em>). In addition, courts may deny claims from the DTA if the case has been pending for too long, based on the European Court of Human Rights\u2019 \u201cundue delay\u201d doctrine. Other than the time limits explained previously, there are no formal time limits that apply to an audit.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">If a taxpayer disagrees with a tax assessment, does the taxpayer have a right of appeal?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes, a taxpayer who disagrees with a tax assessment or additional tax assessment can file an objection (<em>bezwaar<\/em>) against the tax assessment with the DTA. A different tax inspector will consider the objection. The letter of objection should be filed within six weeks after the date of issuance of the relevant tax assessment or additional tax assessment. If the taxpayer is not satisfied with the outcome of the objection process, they can then proceed to the judicial stage, by filing an appeal with a court within six weeks after the decision to the objection is received.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is the right of appeal to an administrative body (independent or otherwise) or judicial in nature (i.e. to a tribunal or court)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In the Netherlands, the right of appeal in tax procedures typically follows a two-step process:<\/p>\n<ol style=\"padding-left: 0\" type=\"i\">\n<li>Objection (<em>bezwaar<\/em>): The first step is the administrative stage, where taxpayers have the right to file a letter of objection with the DTA if they disagree with a tax assessment or decision. During this stage, the DTA review the objection, and taxpayers may provide additional evidence and arguments to support their case.<\/li>\n<li>Appeal (<em>beroep<\/em>): If the taxpayer is not satisfied with the outcome of the objection process, they can then proceed to the judicial stage, by filing an appeal with a court within six weeks after the decision to the objection is received.<\/li>\n<\/ol>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is the hearing in public? Is the decision published? What other information about the appeal can be accessed by a third party\/the public?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The objection process is not public, and the decision upon such objection is not published. Court proceedings are public, in principle, and the court\u2019s ruling is published in relatively anonymized form and can be accessed by the public online.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is the procedure mainly written or a combination of written and oral?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The objection procedure consists mostly of written correspondence, although an oral hearing can always be requested and is usually held. The appeals procedure is a combination of written phases and, usually, an oral hearing.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a document discovery process?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In the Netherlands, the DTA can obtain any information required to determine the tax position of a taxpayer (see Q10\/11). In that sense, a document discovery process does exist, but it is not as extensive as the discovery procedures commonly found in some other legal systems such as in the United States.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are witnesses called to give evidence?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes, witnesses can be called to give evidence in legal proceedings in the Netherlands, including tax-related cases. This can occur in writing and\/or through giving a statement during a hearing.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is the burden on the taxpayer to disprove the assessment the subject of the appeal?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In principle, in the Netherlands, the rule &#8216;who asserts, must prove&#8217; applies. In this context, the DTA would generally have to prove if it does not agree with a position taken by the taxpayer in its tax returns filed. Under certain circumstances (e.g., if legally required minimum documentation is unavailable, or if an information decree has become final and binding), a reversal and\/or increase of the burden of proof can occur, requiring the taxpayer to convincingly prove their position, which can in practice sometimes represent a very high threshold.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How long does an appeal usually take to conclude?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The average duration of a full appeal process is between six months and two years, per instance.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does the taxpayer have to pay the assessment pending the outcome of the appeal?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>If a company files an objection or appeal, it is possible to separately request a deferral of payment for the outstanding tax liability and any fines. If the procedure ultimately results in the amount still needing to be paid, interest will be due on this amount. Alternatively, taxpayers may settle the taxes levied, and receive a repayment thereof if the appeal is followed by the court.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any restrictions on who can conduct or appear in the appeal on behalf of the taxpayer?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In principle, a taxpayer does not have to be represented by anyone in tax matters. And if represented, a taxpayer can be represented by anyone. This does not necessarily need to be a (tax) lawyer or attorney. In exceptional cases, the DTA can refuse a representative, for example, if they believe the representative to be incompetent or unreliable. The DTA cannot refuse representation of an attorney. Only during an oral hearing before the Supreme Court, a taxpayer must be represented by an attorney, although oral hearings take place only very occasionally before the Supreme Court.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a system where the \u201closer pays\u201d the winner\u2019s legal\/professional costs of an appeal?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>If a taxpayer prevails in an appeal procedure, a cost reimbursement is granted to the taxpayer based on standard quota which are usually not cost-effective. Only in very special circumstances, the court may grant a request to receive additional or even actual, total cost reimbursement, for example in cases where the taxpayer was forced by the DTA to incur very high costs due to unnecessary actions from the DTA\u2019s side. Conversely, if the DTA would prevail in the appeal procedure, usually the taxpayer is not charged with the DTA\u2019s costs of the proceedings, unless in case of an abuse of procedural law.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is it possible to use alternative forms of dispute resolution \u2013 such as voluntary mediation or binding arbitration? Are there any restrictions on when this alternative form of dispute resolution can be pursued?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes, it is possible to use alternative forms of dispute resolution with the DTA in certain situations, such as voluntary mediation or binding arbitration. However, this is not very common.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a right of onward appeal? If so, what are all the levels of onward appeal before the case reaches the highest appellate court.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes, after the first instance appeal process, the taxpayer and the DTA have a right of onward appeal before a Court of Appeal (<em>Gerechtshof<\/em>). Both the first instance appeal process and the onwards appeal are used for questions relating to facts, as well as questions related to the application of the law. After the onward appeal, questions related to the application on the law only can be made subject to a final instance appeal (<em>cassation proceeding<\/em>) before the Supreme Court (<em>Hoge Raad<\/em>).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the main penalties that can be applied when additional tax is charged? What are the minimum and maximum penalties?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There are two kinds of administrative penalties and one further form of criminal tax penalty. For omissions, administrative penalties are levied, varying from a warning up to a penalty of max. EUR 6,709 (2025) in case of recurring omissions. For (intentional) gross negligence and other forms of offences, a penalty can be levied equal to a percentage of the tax levied, up to 300% of the tax levied. Criminal tax penalties may even include imprisonment, in addition to very substantial monetary penalties.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">If penalties can be mitigated, what factors are taken into account?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In the Netherlands, penalties imposed by the DTA can sometimes be mitigated or reduced if there are so-called penalty reducing facts and circumstances as set out in a decision (<em>strafverminderende feiten en omstandigheden<\/em>). The decision to mitigate or reduce penalties is typically based on several factors and considerations, including (i) a disproportionality between the severity of the offense and the penalty to be imposed or imposed under this decision, (ii) mitigating circumstances that led to the punishable act, (iii) if there is a voluntary disclosure under certain circumstances, and (iv) financial circumstances of the taxpayer.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Within your jurisdiction, are you finding that tax authorities are more inclined to bring challenges in particular areas? If so, what are these?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In their annual plan for 2025, the DTA refers to its special focus on VAT fraud, BPM fraud relating to the import of cars, and hidden assets in the form of virtual (crypto) assets, residence and establishment issues, and international company structures.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">In your opinion, are there any areas which taxpayers are currently finding particularly difficult to deal with when faced with a challenge by the tax authorities?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Dutch tax laws have continued to become more complex in recent years. Tax laws introduced decades ago underwent excessive amendments, further affecting the ease with which the taxpayers should be able to understand and apply these rules. Increasingly, taxpayers struggle to get a clear understanding of the issues and aspects that may impact their tax position. In such cases, it can be challenging to determine how to accurately present and, if necessary, defend their position to the DTA.<\/p>\n<p>Furthermore, several years ago, the DTA carried out a significant reorganization, which led to the departure of many tax inspectors and other skilled and experienced tax specialists. As a result, some argue that the overall workflow of the DTA has increased excessively and, consequently, its effectiveness and handling speed have unfortunately declined.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">\u202fWhich areas do you think will be most likely to be the subject of challenges and disputes in the next twelve months?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>As mentioned under Q29, the DTA have indicated in their annual plan for 2025 that they will specifically focus on VAT fraud, BPM fraud and hidden assets in the form of virtual assets, residence and establishment issues, and international company structures. We expect these areas to be the subject of increased challenges and disputes in the coming year.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\r\n<div class=\"word-count-hidden\" style=\"display:none;\">Estimated word count: <span class=\"word-count\">3293<\/span><\/div>\r\n\r\n\t\t\t<\/ol>\r\n\r\n<script type=\"text\/javascript\" src=\"\/wp-content\/themes\/twentyseventeen\/src\/jquery\/components\/filter-guides.js\" async><\/script><\/div>"}},"_links":{"self":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide\/114694","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide"}],"about":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/types\/comparative_guide"}],"wp:attachment":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/media?parent=114694"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}