Compensation savers starts on 1 July, can cost 12 billion euros

On 1 July, the Tax Authorities will start compensating for duped savers who received too high an assessment on their assets. Secretary of State Van Rij wants to have completed this “restoration of law” for the massively filed objections at the beginning of August, he writes to the House of Representatives.

It is not yet clear who exactly gets compensation and how high that amount will be. The Secretary of State for Taxation and Tax Authorities wants to decide first with the House of Representatives which option is best for this. Two options have been elaborated more specifically.

Not an ideal solution

The costs between different options vary considerably, from 2.4 billion to 11.7 billion euros. “Of course, we are going to rectify the past, although there is no ideal solution for that,” says Van Rij. “All the options that have been investigated have disadvantages in addition to advantages.” Because of the big budgetary consequences, he wants to talk to the House of Representatives first. “It‘s really complicated.”

Van Rij says that difficult choices have to be made in the coming period. He has been looking for solutions for a major weaving error in the tax code for some time. The Supreme Court has ruled that a large group of savers paid too much tax in the period between 2017 and 2021.

It is about the capital return charge, also known as savings tax. It states that the Tax Authorities may base an assessment on a fictitious return and not on the actual return achieved. But because savings have hardly yielded anything in recent years due to low interest rates, there are savers who have paid too much tax.

Interest

Van Rij emphasizes that not everyone is compensated. “It’s mainly savers. It‘s not about investors who sometimes even paid too little tax.”

Around 60,000 people have officially objected to this tax in box 3 over the tax years 2017 to 2020, and the cabinet has yet to decide whether this group will be expanded. Van Rij wants to do this in close consultation with the House of Representatives. The larger the group, the more expensive the recovery operation becomes.

The contested asset return levy disappears, but that does not happen in the short term. This is because the computer systems of the Tax Authorities cannot handle that.

Emergency Act

Van Rij is now aiming at 2025 and from then on, tax is levied on the actual return that someone has achieved on their assets. In the bridging time, an emergency law will be introduced to prevent further problems.

There

is a very small chance that there will be a temporary capital tax, as some parties want. Van Rij doesn’t call that a logical choice when a new system is coming in three years.