Klaas Broekhuizen – Sunday, September 21, 2014,
Until July 1st, it was temporarily possible to withdraw undeclared money from abroad without penalty, under the so-called voluntary disclosure scheme. More than 12,000 people did so, bringing home €6 billion.
Since that date, 30% has been required to pay a fine, and 60% by mid-next year. However, according to Charles Langereis and Dennis Evertsz, of Wintertaling lawyers, this fine will not hold up in court. It violates European law, and in previous, similar cases, the European Court of Human Rights has also ruled against a fine.
The voluntary disclosure scheme concerned money hidden abroad for a maximum of twelve years. "The question now is how long the fine must be paid," says Langereis. "The State Secretary gives the impression that it applies to the entire preceding twelve-year period. However, European law stipulates that 'if, after the offense has been committed, the law provides for a lighter penalty, the offender must benefit from it.' Moreover, the European Court of Human Rights has ruled that in the event of a change in legislation after the offense was committed, the provisions most favorable to the suspect must be applied."‘
Court case
In both cases, the penalty will be based on the penalty-free voluntary disclosure scheme. In a court case in North Holland concerning a previous voluntary disclosure scheme, the court therefore rejected a fine. According to the two tax experts, the Supreme Court has also ruled several times that when amending a penal provision, the most favorable provision must be applied. The conclusion, they argue, should be that no further fines can be imposed for the period prior to January 1, 2015.
Arjo van Eijsden of EY takes a more nuanced view. "Langereis and Evertsz certainly have a valid point, but some caution is advised. The Breda District Court reached the opposite conclusion than the one in North Holland. Breda ruled that voluntary disclosure and the criminality of the punishable offense must be considered separately and therefore looked solely at the moment of voluntary disclosure. At that time, a fine of 15% applied. The Supreme Court has not yet explicitly ruled on this."‘
Van Eijsden points out that anyone who files a complaint now will have to go to court to overturn the Tax Authority's fine. "That's certainly not an attractive option for private individuals."‘
It is estimated that €50 billion in black money was once held abroad, of which around €15% has been returned in recent years.
Source: FD
