Well-meaning payment pause for tax debts left benefit scandal victims in more trouble
In 2021, the government decided to give the victims in the benefits scandal a break by temporarily suspending their payments to the Tax Authority and the Child Benefits Agency. But not all parents realized that this meant their tax debts continued to exist and even increased in the intervening years. Many parents are now once again burdened with significant debts, NOS reported after speaking to affected parents.
The Ministry of Finance could not tell the broadcaster how many benefit scandal victims are in arrears again. A spokesperson said that, of those assessed, approximately 40 percent owe a debt to the Tax Authority or the Child Benefits Agency. For almost a third of these parents, the debt exceeds €5,000.
The payment pause was introduced in 2021 at parliament’s request. The MPs hoped to provide some relief to affected parents. About 100,000 people used the temporary payment suspension.
The pause was initially intended to last only one year, to prevent debts from piling up. But due to the coronavirus crisis and the delayed settlement of the benefits scandal, the Tax Authority and the Child Benefits Agency only started large-scale collections from affected parents last year.
For some victims, the collection letters came as a complete surprise. They have to repay all the arrears that occurred over several years at once. And because it involves all sorts of taxes and benefits, the amount rose very quickly.
Attorney Pauline Ros, who represents dozens of victims of the benefits scandal, has recently received countless calls about this. “People are panicking because of all the blue envelopes. It reminds them of the benefits scandal all over again.”
According to the Ministry of Finance, it informed all affected parents via the website, in conversations, and through annual letters. But numerous victims say that they had no idea. They say they didn’t receive the letters, or that the Tax Information Line couldn’t answer their questions, leading them to lose track of what debts were still outstanding.
The fact that the Ministry was aware that not all parents knew about their debts is evident from a call instruction to employees when the large-scale collections launched in 2024. “Most parents are not fully aware of their outstanding balances,” the call script states, according to NOS. “During these conversations, parents can react emotionally or angrily.”
If victims cannot pay their new debts, they can apply for a payment plan or debt forgiveness. “But because the rules are strict, they are once again experiencing great stress,” attorney Ros told the broadcaster. She hopes that the Tax Authority and Child Benefits Agency will be lenient in assessing requests for payment plans from victims. “My clients understand that they have to repay this and want to. They’re hoping for a solution.”
