Last week, the 2015 Tax Plan was again discussed extensively in the Permanent Parliamentary Committee for Finance. Unfortunately, it did not produce a great deal of news about the working expenses scheme (WKR). Clearly, we will have to wait and see what results emerge from the ongoing political wrangling. The press is not shunned in the process. Several articles appeared this week, often with much abuse, reporting how unreasonable certain choices made in the bill would be for the employer and/or employee.
Last Friday, State Treasurer Wiebes of Finance replied in writing to the latest questions from members of the House Committee. He explained again why choices were made, as they were made. But changing the choices is out of the question as far as he is concerned. If politicians want to do so anyway, the associated budgetary burden will have to be made up elsewhere.
Wiebes reiterates that the workplace criterion is necessary to distinguish between different in-kind facilities. To the extent that they are used at the workplace, they are valued at nil. It is impractical to determine the private use and thus the value of the individual private benefit of facilities enjoyed at the workplace. The background to nil valuation is therefore mainly practical.
The value of workplace parking is difficult to determine. This is not the case for a parking space elsewhere (at a customer's premises or in any car park) as an invoice is often available. Therefore, the provision of the latter parking space is taxed (for employees driving a private car), but parking at the workplace is allowed untaxed.
With regard to the valuation of canteen meals (€3.15), the existing practice before the introduction of the WKR will be continued. Wiebes acknowledges that the WKR does not simplify matters here, but does not intend to simplify them.
Wiebes answered questions on the bicycle schemes orally earlier in the week. Again, he sees no reason for introducing a specific facility. He reiterated the possibility of working with an interest-free staff loan, repaid with tax-free payment of travel expenses (€0.19 per kilometre of business or commuting travel).
The issues surrounding interest on employee loans, which have been used for the employee's own home, are explained in detail and clearly with examples. But for the repair measure, we really have to wait for the Fiscal Collective Act 2015 to be introduced in 2015.
The group taxation for foundations will most likely not come about. MP Dijkgraaf had suggested joining the VAT fiscal unity for this purpose. There is already a decree for this, so these situations are easy to establish. The budgetary burden (€ 2 million) and the extra implementation costs prevent the State Secretary from introducing this scheme.
It is likely that after Friday's written answers, the Permanent Parliamentary Committee will defer consideration of the bill to a plenary session of the House of Representatives. It will then be up to politicians whether one (or more) of the lobby groups will still score a facility and which other facility(ies) will have to pay for it.