... is watching you! Also in the Netherlands, including by the KLPD (Korps Landelijke Politie Diensten) with a very large number of so-called ANPR cameras. ANPR stands for Automatic number plate recognition.
The issue before the Den Bosch Court of Appeal was whether the data captured by these ANPR cameras could be used for the Tax Administration's inspection of mileage records showing plausible evidence that the company car was used privately for less than 500 kilometres in a year.
These cases involved employees with a Statement no private car use. This is a statement issued by the Tax Administration at the request of the employee who informs the Tax Administration that he drives less than 500 private kilometres with the company car in a calendar year. Based on this statement, the employer may omit the deduction of payroll taxes for the car.
Upon request, the employee must prove to the satisfaction of the Tax Administration that no more than 500 private kilometres were actually driven with the car in a calendar year. Such proof must be provided by means of a comprehensive mileage administration, i.e. a mileage administration where all kilometres driven in the calendar year detailed as business trips (including commuting) or private trips.
The employee (not the employer) who fails to meet this burden of proof receives the additional assessment of payroll taxes, plus a fine. The employees whose case came before the Den Bosch Court of Appeal were of the opinion that the tax authorities were not allowed to use information from ANPR cameras to check their mileage records, in short, because it violated their privacy.
The court agreed, but found that in this situation the violation of the employee's privacy was justified. This applies to both the after-tax payroll taxes and the fine. Indeed, the invasion of privacy in this context is expressly laid down by law and necessary in the interest of the country's economic well-being. To the application of a Declaration of no private use is, according to the Court, inherent that the employee's privacy is affected. The Court also decides that, given the large-scale nature of the issue of Statements of No Private Use, the limited possibilities for verification and the great budgetary importance for the state, the obvious thing to do was to make the verification of mileage records as efficient as possible.
At the moment, it is not clear whether our top tax court, the Supreme Court, will be asked for an opinion.