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NL: New tax laws make the system even more complicated, inspectorate says

THE HAGUE – The Cabinet must take into account that the measures bundled in the tax plan for next year will make the tax system more complicated for citizens. “The implementation will also become more vulnerable to future adjustments,” warns the new Taxes, Benefits and Customs Inspectorate (IBTD). 

THE HAGUE

– The Cabinet must take into account that the measures bundled in the tax plan for next year will make the tax system more complicated for citizens. “The implementation will also become more vulnerable to future adjustments,” warns the new Taxes, Benefits and Customs Inspectorate (IBTD).

 

“We believe it is important in these situations that citizens and businesses can properly implement the new measures. This increases the effectiveness of the measures and can also contribute to restoring confidence in the government,” the IBTD wrote in a letter to Finance Minister Sigrid Kaag. The letter accompanied a report carried out over the summer studying a few specific government tax proposals. 

“We believe it is important in these situations that citizens and businesses can properly implement the new measures. This increases the effectiveness of the measures and can also contribute to restoring confidence in the government,” the IBTD wrote in a letter to Finance Minister Sigrid Kaag. The letter accompanied a report carried out over the summer studying a few specific government tax proposals.

 

The Ministry of Finance has carefully examined the comprehensibility for citizens and the feasibility of the four measures in the tax plan examined. Moreover, there has been transparent communication about this, which is a compliment to the Inspectorate. 

The Ministry of Finance has carefully examined the comprehensibility for citizens and the feasibility of the four measures in the tax plan examined. Moreover, there has been transparent communication about this, which is a compliment to the Inspectorate.

 

However, the Inspectorate notes that tax proposals often consist of measures that are additions or exceptions tacked on to existing laws and regulations. This occurs even though the system is already too complicated for many citizens. Although all measures have been tested for feasibility and comprehensibility for citizens, this was done by assessing each individual measure isolated from all other requirements. They have not been assessed in conjunction with other rules and regulations. 

However, the Inspectorate notes that tax proposals often consist of measures that are additions or exceptions tacked on to existing laws and regulations. This occurs even though the system is already too complicated for many citizens. Although all measures have been tested for feasibility and comprehensibility for citizens, this was done by assessing each individual measure isolated from all other requirements. They have not been assessed in conjunction with other rules and regulations.

 

Simplifying the taxes and benefits system, an important goal of this Cabinet, will also only become more difficult if the system becomes even more complex. In the future, the Ministry of Finance will therefore have to look at the consequences measures have on the complexity of the entire system. 

Simplifying the taxes and benefits system, an important goal of this Cabinet, will also only become more difficult if the system becomes even more complex. In the future, the Ministry of Finance will therefore have to look at the consequences measures have on the complexity of the entire system.

 

Kaag said the Cabinet planned to “study the report carefully.” She told the Tweede Kamer that the Cabinet intends to respond to the report by 7 November at the latest. 

Kaag said the Cabinet planned to “study the report carefully.” She told the Tweede Kamer that the Cabinet intends to respond to the report by 7 November at the latest.

https://www.curacaochronicle.com/post/main/nl-new-tax-laws-make-the-system-even-more-complicated-inspectorate-says/

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