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Global Tax Controversies, 2022

Tax Dispute in This Jurisdiction

In the Netherlands, tax disputes can arise in a number of ways. Tax disputes can arise as a result of tax investigations initiated by the Dutch tax authorities (DTA) or claims submitted by DTA (for example, after having a tax returns submitted by taxpayers or as a result of samples from DTA taxpayers). It is also possible that the Audit Authority is aware of newspaper transactions or receives information from foreign tax authorities, which may lead to tax audits or requests from the Revenue Audit Authority.

Reasons For a Tax Contoversies

In general, it is difficult to identify which GTC (Global Tax Controversies) and which issues give rise to more tax lawsuits than others. Tax audits on DTAs can be very broad and range from individuals (personal income tax, estate tax), small corporations (income tax) to large corporations (corporate income tax). Tax audits can also focus on taxes such as value added tax (VAT), payroll tax or Dutch withholding tax. Recent legal cases show that the DTA does not take into account cases where inconsistencies have been created by the taxpayer (eg, reductions in payments, negligence), or where there is an interest charge. accessible established (e.g. to balance against tax profits), or which is considered to be a breach of Community law.

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Avoid Tax Disputes

It is up to DTA to decide whether to initiate a tax audit. Occasionally, for some departments, a standard inspection policy will apply; for example, reviewing industry taxpayers every few years. The risk of a tax audit can be reduced or reduced through prior consultation (e.g. by undertaking subsequent formal negotiations) with the DTA or by submitting an ATR or APA). In certain circumstances, taxpayers may also enter into a “flat check” agreement with the DTA (see 6.1 Tools for tax-related ADR in this jurisdiction). The purpose of the agreement is to establish an interactive relationship with DTA and provide information and discuss issues with them in real time (to avoid discussions that take place after DTA has reviewed the SPT).

Efforts To Combat Tax Evasion

At present, it is difficult to pinpoint the impact of the OECD BEPS project on basic depreciation and profit sharing (BEPS) on the number of Dutch tax disputes. However, trade and investment disputes between countries are expected to increase in the future, as jurisdictions can interpret BEPS rules in their own way. In this context, it is also necessary to consider the impact of the EU directives on the prevention of priorities (ATAD) 1 and 2 (implemented by the Netherlands in 2019 and 2020).

The same is true for the mandatory effect of the EU Information Directive (MDD) (also known as the acronym DAC6), where taxpayers must take into account the possibility of a cross-border tax system becoming aggressive from 1 January 2021 (in the Netherlands)) . ) with retroactive effect until 25 June 2018. The Netherlands applies this Directive in their international aid law.

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