“"The game is up," says State Secretary of Finance Eric Wiebes. First, the fine on undeclared assets was doubled last year to 120%. And now the voluntary disclosure scheme is being scrapped. Wiebes still has a hurdle to overcome before that happens.
Currently, tax evaders who voluntarily disclose their tax within two years of filing an incorrect tax return will not be fined. The abolition of the voluntary disclosure scheme will put an end to this situation. Is that justifiable?
European law stipulates that no heavier penalty may be imposed than that applicable at the time the offense was committed. This is called the principle of criminal legality, also known as the nulla poena principle. A tax fine is also considered a penalty.
The offense involved filing an incorrect tax return. Before January 1, 2010, there was no fine for voluntary disclosure. In a lawsuit in North Holland arising from an earlier voluntary disclosure program, the judge therefore dismissed the fine.
The question of whether the increase in the fine percentage and the abolition of the voluntary disclosure scheme will have any effect is therefore not as certain as Wiebes would have the tax evaders believe.
But those who eclipse their savings would be wise not to wait any longer to declare their undeclared assets. Recent developments such as the group request to UBS to provide information and the "Panama Papers" show that it is not a matter of or, but when the tax authorities are uncovering the black assets.
Financial Daily January 28, 2017
