The Supreme Court’s ruling on the unlawfulness of the Box 3 levy cannot be used as a reason for not including assets in the income tax return.
A surprise?
That in itself is no surprise. This issue has arisen in proceedings concerning additional income tax assessments imposed by the Tax and Customs Administration for the years 2007 to 2017 inclusive. The party concerned in these proceedings failed to declare assets held in bank accounts in Italy and Luxembourg in their income tax returns.
Gelderland District Court rules that it cannot reasonably be inferred from the Box 3 judgment and the entire discussion on Box 3 that a (presumed) taxpayer is not required to declare foreign assets at all. The law imposes an obligation on taxpayers to file their tax returns in a timely, clear, definitive and unreserved manner.
Declaration
For income tax returns for 2021 (and any outstanding return still to be filed for 2020), the total assets forming the basis for Box 3 must also be stated in the return. The Tax and Customs Administration will then take the Box 3 ruling into account when issuing the tax assessment. Anyone who disagrees with this must make their objection known by lodging an appeal within 6 weeks of the date of the assessment. See our articles: