The State Secretary for Finance has Parliamentary questions answered questions regarding the Tax and Customs Administration’s recovery strategy and benefits.
Savings
In response to a question from the VVD parliamentary group, the State Secretary stated that there will be no blanket exemption for savings that entrepreneurs intend to use as retirement provisions. The recovery policy is designed to safeguard the minimum subsistence level in accordance with the applicable standards, so that citizens are left with sufficient resources to meet their living expenses.
In itself, this is a logical position, given that there are (tax) incentives for setting up retirement provisions, which have been significantly expanded with effect from 2023. We describe this expansion in our article More room to save for old age. Entrepreneurs – though this naturally applies to all citizens – who wish to set aside financial resources to provide for their retirement can make use of these options.
Even in the event of bankruptcy or debt restructuring, retirement benefits accrued under tax-favoured schemes generally remain entirely unaffected (Article 7:984(4) of the Civil Code). It is important in this regard that the pension scheme established entitles the member to periodic payments. Furthermore, the insurance policy must be subject to a surrender prohibition and the premiums paid must have been tax-deductible for income tax purposes.
Corona debts
It was recently announced that the (final) recovery of COVID-19 debts from business owners who have not yet been in touch has been postponed. This currently affects around 45,000 business owners (in April, the figure was 60,000). They will receive a letter from the Tax and Customs Administration’s collector in early July, dated 15 August 2023. Debt recovery will commence 14 days later, i.e. with effect from 29 August 2023. Even then, attempts will still be made to reach a solution in consultation with the business owner.