Cabinet member Folkert Idsinga suddenly resigns amid financial disclosure scandal

The Cabinet member responsible for governance at the Dutch tax office and policies related to taxation announced his sudden resignation during a press conference on Friday. State Secretary Folkert Idsinga seemed dour and frustrated when pressed for further explanation after a week of news reports that he has been unwilling to disclose the nature of 6 million euros in investments that he owns under his personal holding company. He is the first member of Prime Minister Dick Schoof's Cabinet to resign after 122 days in office.

Idsinga insisted that he followed all of the rules regarding disclosures, including extensive discussions during the formation of the Cabinet. He also said that he will reveal his investments now that he has stepped down. "I am going to make it public, but not with a knife to my throat," he said during the press conference. "The last straw for me was that there was a dynamic where I did not feel that there was sufficient confidence in me as a Cabinet member."

The NSC member suggested that coalition party PVV was the reason he decided to call it quits. He found it "unpalatable" that PVV leader Geert Wilders joined the opposition in criticizing Idsinga. The two parties have repeatedly been at loggerheads over a wide range of issues, most recently when the NSC refused to join a call to declare a state of emergency regarding the reception of asylum seekers, as the PVV had demanded. The two parties have a well-documented lack of trust even dating back to the beginning of the coalition formation process following the election in November 2023.

Financial news outlet RTL Z first reported that Idsinga declined repeated requests for comment about his shareholdings, including those in publicly-traded companies. The NSC politician previously said that the investments are a "private matter." His expected resignation was first reported by RTL Nieuws based on comments from sources close to the Cabinet. He stepped down at 4 p.m., about a half-hour after the story was published. Idsinga's resignation was quickly confirmed by Prime Minister Dick Schoof, and was approved by King Willem-Alexander, the Cabinet's press office confirmed.

Idsinga again reiterated that he discussed his investments with the Cabinet formation leader Richard van Zwol, who helped complete negotiations between coalition parties PVV, VVD, NSC and BBB. Van Zwol then helped place people in the positions of ministers and state secretaries within the Cabinet. The matter was also addressed with the State Advocate, and Schoof himself during the formation process, Idsinga said on Friday.

The rules governing financial disclosures of Cabinet members can be somewhat vague, as they are only required to make such information publicly known if it is possible for them to do so. However, it is up to them to determine what they can, and cannot, reveal to the public. Idsinga claimed that that his business interests were being managed "at arm's length," arguing that he handed over power of attorney and voting rights to other individuals to manage his holdings during his term of office.

In a letter sent to the Tweede Kamer on Friday, Idsinga wrote, "Finally, I would like to add that I have been affected by the manners and tone in the political debate. This is not the way in which we should govern a country together. I would therefore like to express my concern about what this view of business interests means for future candidate Cabinet members, specifically those coming from outside politics. Entrepreneurs, and others with a social career, often have business interests from their previous lives."

In his specific position, Idsinga was able to influence taxation policy that directly affects the businesses tied to him. Van Zwol's final report stated that Idsinga owns “participation in Dutch real estate funds,” and that he also loaned money to small- and midsized companies. His holdings include bonds, certificates, and shares in listed and unlisted companies.

As a result of his stonewalling on the issue, he was the target of intense criticism from members of the Tweede Kamer, the lower house of Dutch Parliament. Coalition party PVV joined the opposition, with a majority demanding Idsinga disclose his investments by Monday. Though Idsinga is currently a member of political party NSC, he previously sat in the Tweede Kamer as a VVD member.

Idsinga already told the business world in September that business owners who hire self-employed people in bogus constructions will not face fines next year for violating new rules about the issue. Companies have used the method as a loophole to avoid making someone a staff member, and end up making it difficult or impossible for the self-employed person to take on other clients.

The law came entered the books in 2016, but only the most egregious violators face sanctions. It was expected to become a more significant issue next year.

Further, Idsinga has also said that the Belastingdienst, the Dutch tax office, will not likely implement a new capital gains tax by 2027, as was previously anticipated. The current tax on gains generated by assets and holdings over the course of a year is based on a fictitious estimate of return that led to people with cash in low-interest savings accounts being asked to pay a higher share than what others paid.

The law was struck down by the courts, and the Dutch State will likely have to refund many of these people. The State will lose out on billions of euros in revenue every year until a replacement policy is in place.

Idsinga would also be responsible for implementing a controversial sales tax increase on books, cultural outings, entertainment, and overnight stays. The value-added tax increase is set to rise from 9 percent to 21 percent.