A newspaper delivery driver travels over 20,000 kilometres a year in his own car, without receiving any compensation for this. In his tax return, he claims 40 cents per kilometre as a deduction. The tax inspector allows only 19 cents. The delivery driver distributes newspapers to depots and delivers them to people’s homes. In 2018, he drove 20,916 kilometres in his private car for this purpose. He receives no mileage allowance. In his tax return, he claims €8,367 in car expenses, based on 40 cents per kilometre according to the ANWB tool. In his view, this amount is actually still too low, as newspaper delivery causes extra wear and tear due to the frequent starting and stopping.
Law caps the deduction
The delivery driver invokes the Publishing Sector Agreement, which states that the costs actually incurred must be taken into account. The Court of Appeal does not agree with this. That provision applies to clients, not to contractors. For income tax purposes, the law caps the deduction for a means of transport forming part of one’s private assets at 19 cents per kilometre. It is irrelevant that the actual costs are higher. The deduction remains limited to €3,974.
Explicit reservations undermine trust
The delivery driver also invokes the principle of legitimate expectations. In earlier proceedings concerning 2017, the inspector had accepted his tax return. The Court of Appeal does not accept this argument either. At the time, the inspector explicitly stated: ‘I am prepared to accept the costs for this year. However, as this has implications for subsequent years, no rights can be derived from this undertaking’. The delivery driver cannot rely on that statement for subsequent years.
Two lessons
This ruling illustrates two points. Firstly, the court strictly applies the statutory cap on the mileage allowance, regardless of the actual costs. Secondly, an explicit reservation attached to a commitment prevents the taxpayer from relying on it for subsequent years.