A private limited company did not submit any corporation tax returns for the years 2019 to 2021 inclusive. The company claims that this is because returns can only be submitted using eHerkenning. It is unable to pay the associated costs. In response, the tax inspector has, ex officio, imposed zero corporate tax assessments for these years and a late filing penalty of €2,757 for the year 2021.
eHerkenning costs are not disproportionate
The costs of eHerkenning are not of such a magnitude as to be disproportionate to the objectives pursued by the State Secretary for Finance in introducing eHerkenning. As long as the private limited company exists, it must file an annual corporation tax return using eHerkenning. Furthermore, the company has not put forward any arguments regarding losses incurred in the years in question. The appeals against the nil assessments are therefore unfounded.
Absence fine reduced
The company acknowledges that it did not file its corporation tax returns for the years 2019 to 2021 (on time). The imposition of a late filing penalty for the year 2021 was therefore justified. However, the court has reduced the late filing penalty in view of the company’s financial circumstances. The penalty has therefore been reduced to €500.
Exceeding a reasonable time limit
The fine is further reduced on the grounds of 'undue delay', i.e. the reasonable time limit having been exceeded. More than 42 months have elapsed since the fine was announced. The reasonable time limit of two years has therefore been exceeded by 18 months. The fine is reduced by 15% to €425.