Netherlands: Tax inspector collective decision on Box 3 (wealth tax) class-action appeal

Concerning a collective decision on the class-action appeal against the Box 3 tax regime

Concerning a collective decision on the class-action appeal against the Box 3 tax regime

The tax inspector on 4 February 2022 issued a collective decision on the class-action appeal against the Box 3 tax regime (wealth tax) for the years 2017 through 2020, upholding the objections of the taxpayer class.

The Supreme Court (Hoge Raad) previously held that the Box 3 tax regime for the years 2017 and 2018 was contrary to the European Convention on Human Rights (ECHR) and directed the tax inspector to issue a collective decision on the class-action appeal within six weeks. The Supreme Court stated that the regime could be remedied by taxing actual returns rather than fixed returns.

The Lower House of the Dutch Parliament on 2 February 2022 debated the remedial action to be taken in response to these decisions, and the government plans to submit a tentative roadmap for such remedial action to the Lower House around 1 April 2022. The government also indicated that, around 1 May 2022, it will create more clarity about its vision of taxing wealth in the future.

Tax assessments in Box 3

For the time being, no final individual (personal) income tax assessments for the years 2017 through 2021 and other decisions will be imposed on taxpayers who are taxable under Box 3, unless the assessment period threatens to expire or other reasons so warrant.

Until now, provisional individual income tax assessments for the year 2022 have been imposed based on the current statutory Box 3 regime without taking the Box 3 judgment into account. The Deputy Minister of Finance has said that allowance will be made for the Box 3 judgment in finalizing these tax assessments.

Read a February 2022 report prepared by the KPMG member firm in the Netherlands

 

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