How far can the tax authorities go in requesting information?

What is your information obligation?

On the grounds of art. 47 clause 1 AWR everyone is obligated to provide and make available the data and information that may be of importance for the taxation. The designated information must be, on the grounds of art. 49 clause 1 AWR made available resolutely, clearly and without delay in the way deemed suitable by the inspector, within the by the inspector set deadlines. Taxpayers can also, under burden of a penalty payment, be sentenced to disclose all information that may be of importance for a correct taxation. This obtained material may, however, exclusively be used in the benefit of the taxation. If this material is used for fiscal penalisation or prosecution of the taxpayer, then it is up to the fiscal judge or the criminal court to draw the necessary consequences. See for more information the article ‘Zwartspaarders genoodzaakt tot zelfincriminatie’ (‘Free-riders forced into self-incrimination’) on our website.

What information may be provided through third parties?

The tax authorities are licensed to obtain information through third parties in executing their work. This has also shown in the following two recent cases.

Information through a health insurance company

The question whether the tax authorities can obtain information through a third party has emerged in a case where the tax authorities used information obtained through a health insurance company for taxation. In this case it entailed a taxpayer who in her IB-declaration of 2006 claimed certain deductible medical expenses. The inspector, however, is of opinion that she is only entitled to deduction of the standard premium. Because of this the inspector contacts the health insurance company to obtain the necessary information. The taxpayer states that the information obtained through the health insurance company is unlawfully obtained. She had to be notified and the necessary information could also have been obtained through her. However The Court of Amsterdam states that the inspector on the grounds of art. 53 ARW is licensed to obtain the information through a third party (LJN CA0464, nr. 11/00134). In such there is no matter of unlawfully obtained information. This license from the inspector is not limited to the cases where the information cannot be obtained through the taxpayer. In this the tax authorities are not obligated to inform the taxpayer.

License plates are being send to the tax authorities through the police, is that allowed?

According to the NRC of July 27th 2013 the tax authorities have requested the parking information of everyone who parked at a parking meter using their license. The tax authorities wish to check with the obtained information if company car drivers submit to the regulations concerning private mileage. As a company car driver you are, if you do not wish to be subjected to an addition in your income tax, allowed to drive a maximum of 500 kilometres used for private mileage with your business car.

Not only the parking information has been requested by the tax authorities. It seems that the by the police scanned license plates are also being send to the tax authorities. This information is also obtained to check of company car drivers observe the set regulations.

Several company car drivers are confronted with license plate information that show that the by them provided logbook is incorrect. Many of these company car drivers have not enclosed certain drives or they have enclosed certain drives falsely in their administration. The tax authorities have, on this basis, imposed additional taxes of thousands of euros. A number of the company car drivers have filed a lawsuit, because they believe that the recording of their driving behaviour is a violation of their privacy. On this moment an appeal is pending in the court of Den Bosch.

Violation of privacy

The Dutch Data Protection Authority College, the CBP, recorded that the government is collecting and linking an increasing amount of personal data (CPB annual report 2012). The chance of negligence and conflict with the Law protection personal data (Wet bescherming persoonsgegevens) increases, which can lead to violation of privacy. The protection of personal data is a constitutional right, that needs to be upheld by the government.

Now that it is clear that the tax authorities are licensed to obtain information through third parties, it is essential that the law and regulation concerning protection of personal data is strictly upheld. In our opinion improper use of this license can lead to an infringement in the trust of the citizens in the government.

Based on articles from

NRC, 27th of July 2013

NRC NEXT, 7th of August 2013