Incidentation scheme reveals โ‚ฌ12 billion of hidden assets

Between 2002 and 2018, Dutch households have reported more than โ‚ฌ12 billion of ‘hidden’ assets abroad to the Dutch tax authorities. This has generated โ‚ฌ2.1 billion in extra tax to the Treasury, according to a new investigation into tax evasion by the Central Planbureau (CPB).

On average, the amount indicated was around โ‚ฌ435,000 and the people who still came to the tax authorities were men of around 65 years old, relatively often entrepreneurs.

According to the CPB, the declared money remains in the Netherlands, and the clearance scheme has thus contributed to the continued increase in tax income on box 3 to the state.

The CPB believes that the clearance system, with which the fine for concealment of assets in foreign accounts, has led to the large amount of declarations. โ€œIn the event of a low or negligible penalty rate, and an expected increase, capital is indicated much more frequently,โ€ writes the CPB. The scheme ran until 2018.

International cooperation

The low fines are a thing of the past. Countries also exchange more information among themselves. That makes hiding offshore accounts more difficult. โ€œIncreasing the risk of catching by the tax authorities and more active international cooperation are other ways of exposing more hidden assets and preventing tax evasion,โ€ said the CPB.

According

to international estimates in 2015, Dutch households had about โ‚ฌ60 billion outstanding in tax havens.

The most wealthy households have reported their money from Swiss bank accounts, while slightly less wealthy households have previously concealed Belgian accounts. Many Luxembourg accounts were also reported.

For the investigation, the CPB looked at anonymised files of the Tax Administration and data from the CBS.