Dutch companies owe €1b taxes; payment deferred for years
Dutch companies have been allowed to defer payments of almost €1 billion in taxes when they have found themselves in payment problems.
Het Financieel Dagblad discovered this in an investigation.
The companies make use of a unique deferral rule that was brought in in 2009 as an experiment, and silently became policy in 2010. The cabinet initiated this as one of the crisis measures in 2009, to lighten the fiscal pressure for businesses.
By allowing the deferrals, the Tax Administration loses big amounts at the moment a shaky company goes bankrupt. Curators also point to the danger of competition counterfeiting.
Companies that do pay their tax premiums are in a disadvantage compared to companies that were granted deferral.
The Tax Administration can't say how many companies have asked for deferral up to now.