Tax authorities won't start collecting debts caused by pandemic until late August

The tens of thousands of business owners who have not yet paid their coronavirus debt to the Tax Administration have until Aug. 29 at the latest to pay or come forward. Originally, the companies were to receive a letter to that effect as early as next week, to be followed, if necessary, by a foreclosure notice. However, the letters will not be sent until early July. The date specified in the letters is August 15. Two weeks after that, the foreclosure will begin. In this way, the contractors' summer vacations are also taken into account.

It concerns about 45,000 companies, which did not announce themselves yet at all. At the end of April, there were still 60,000 entrepreneurs, many of them smaller companies. State Secretary Marnix van Rij (Tax Administration) is glad there are fewer, but said he is concerned about this group. "We keep emphasizing: come forward. But if you don't, the deadline will soon expire from August 15," Van Rij stressed. But even if the bailiff is soon at the door, he will first have a conversation with the business owner, he said. "The enforcement notice is not nailed to the door immediately."

Such an enforcement order becomes a reality for businesses that will soon hear nothing from them. Bailiffs will first target people "who already have debts before the coronavirus pandemic." So these companies had payment problems years ago. "It is questionable whether these companies are viable," the Ministry of Finance said. The fact that nothing has been paid yet means that they "apparently have not managed to adjust their business model" to make enough profit.

Even for the 45,000 companies who have not yet paid anything, payment arrangements are still possible in some cases. This is possible if there are special circumstances and if the business is fundamentally sound. Then the tax office will look at the individual situation of the company.

The Tax and Customs Administration launched a campaign this week together with the Chamber of Commerce and the UWV calling on business owners to come forward and ask for help if necessary. SME advisors and umbrella organizations are also helping with that call, Van Rij said.