Investigation by the Dutch Tax Authorities
The Dutch Tax Authorities have too little capacity to investigate all taxpayers (periodically). Nowadays the tax investigator only comes forward if there is a reason for this. This may, for instance, occur if a citizen gave a tip or if information was obtained from a different investigation or from a different country or if there is question of an increased risk as a result of the industry in which the taxpayer is active.
The Dutch Tax Authorities have several sophisticated investigative methodologies whilst the investigated taxpayer is usually not familiar with his legal position and the pitfalls that are looming. The authorities of the investigator are particularly far-reaching. All documents that may be relevant to the taxation must, if so requested, be made available to the Dutch Tax Authorities by the taxpayer. In addition the (digital) administration can be inspected and it is also possible to start an investigation at third parties.
As the rights of the inspector are considerable and the obligations of the taxpayer extensive, a well-considered step-by-step plan should be drawn up. Each investigation requires customisation to optimise the position of the taxpayer. An accurate balancing of the facts and circumstances is indispensable. The lawyers of our firm have extensive experience in mapping out a strategy during an investigation. This always takes place in consultation with the client, usually also with the tax consultant(s) and accountant(s).