State Secretary van Rij briefs the House in a detailed letter ahead of the committee debate on Box 3 scheduled for 20 April 2022. We describe the judgement that has prompted all this in this article.
It is all still a matter of exploring and outlining the possibilities. No final decisions have yet been made. However, the letter does give an indication of the direction in which a solution is being sought.
Extreme variants are ruled out
The simplest policy option is to refund all income from Box 3 for the years 2017 to 2022 inclusive. However, that would cost no less than €26.5 billion. Furthermore, people who did in fact have a higher actual income during those years would also receive a tax refund. This option is therefore ruled out.
The option of requesting details of the actual returns achieved from all taxpayers is also out of the question. This is simply not feasible. The Tax and Customs Administration cannot process this enormous volume of information. Moreover, taxpayers will not always be able to provide the information, for example because they are not required to keep detailed records and are not subject to any retention obligation.
Actual asset mix
The only viable means of rectifying the situation is to base it on the actual asset mix, with a new flat-rate calculation of income from savings and investments (Box 3). The rectification can then take place automatically. The Supreme Court has approved the use of flat-rate figures, provided that they reflect reality.
In his letter, Van Rij sets out two options:
- the lump-sum savings option: which operates on the basis of three flat-rate packages (for savings The current savings interest rate is used as the basis – in 2017: 0.25% and in subsequent years 0% – for the other properties the long-term average return on investments and on debts (of the mortgage interest rate).
- the flat-rate option for all asset classes: in which a flat-rate average return is determined for all sections of the tax return.
Target
For the years 2021 and 2022, all taxpayers are eligible for compensation. For the years 2017 to 2020 inclusive, only taxpayers who lodged an objection in good time are formally entitled to compensation. A decision has yet to be made as to whether the restoration of rights also applies to those who did not lodge an objection.
If this option is not chosen, those who have not lodged an objection will have the opportunity to apply for an ex officio tax refund. It is expected that such applications will be submitted in large numbers if politicians do not choose to offer redress to everyone.
We’re curious to find out
Naturally, we are very keen to find out what the outcome of the political process will be. For the time being, there is no point in taking any action. After all, the deadline for submitting a request for an ex officio reduction in respect of the year 2017 is 31 December 2022.
You can find more information on this issue in the following articles: 2021 income tax return and Box 3 and No tax assessments under Box 3 for the time being