Action on taxation in box 3
As we all know, there has been a lot of recent movement on box 3 taxation. Box 3 primarily taxes savings, investments and real estate. The assets in this box were previously taxed on the basis of a flat rate of return: the tax authorities set an assumed percentage, regardless of the actual return.
This meant that many taxpayers paid taxes on a return they had not actually received. You may also have overpaid taxes in the past. If so, chances are you may be eligible for legal redress!
A quick look back at what happened
- In 2017, the levy system was changed. Flat rate returns and a notional distribution of assets were introduced depending on the size of the assets.
- In late 2021, however, the Supreme Court, in the so-called Christmas Judgments, ruled that this system was untenable. The assumptions on which the taxation was based turned out to be legally incorrect.
- This led to a compensation scheme for those affected and the introduction of a new, more detailed system for box 3. This system serves as a temporary solution until a system is introduced in which the actual return is taxed.
- In June of this year, the Supreme Court also ruled on this temporary scheme, stating that investors are still disproportionately taxed.
- The current compensation round targets this group of taxpayers. It is up to them to prove that their actual return is lower than the calculated fixed return.
Whether you are eligible for the so-called restoration of rights depends on the actions you can still take (this year). In addition, restoration of rights is only possible if the actual return turns out to be lower than the fixed return. Our tax expert David Harreman can advise you and his clear approach ensures that you will soon know what you can do.
What this means for you per tax year
Tax year 2019
Only if your final assessment was not yet irrevocably established on December 20, 2021, and you submit a request for ex officio reduction before the end of 2024, you will be eligible for the rebuttal scheme in tax year 2019.
Tax year 2020
Only if your final assessment was not yet irrevocably established on December 20, 2021, and you submit a request for ex officio reduction before the end of 2025, you will qualify for the rebuttal scheme in tax year 2020.
As of tax year 2021 and beyond
The Tax Office has not yet determined the final assessments for 2021, therefore it is certain that you are eligible for the rebate scheme. A revised return can still be filed for this year(s), if the actual return turns out to be lower than the fixed return.
Why request an ex officio reduction
By submitting a request for ex officio reduction, you actually indicate to the Tax Authorities that you do not agree with the amount of the imposed assessment. You can submit this request no later than five years after the assessment was imposed. After five years revision is no longer possible. This means that the amount of the assessment is final. Even if you can prove that you have paid too much tax because the standard return was higher than the actual return. A missed opportunity.
Counter evidence scheme
The methodology as applied by the Supreme Court in recalculating the actual return is embraced by the State Secretary. This methodology will be laid down in legislation that is expected to be introduced in June 2025. From then on, this methodology can actually be used, and the rebuttal rule can be applied.
Do you want to make sure you do not miss out on your right to legal recovery for the years in which you may have overpaid taxes?
Then contact David Harreman or Maxime Visser for personal advice. They can help you take the right steps in time to ensure that you make optimal use of the compensation possibilities.
