Data privacy watch dog puts Dutch Tax Authority under increased supervision

The Tax Authorities will be under the increased supervision of the Dutch Data Protection Authority (AP) for five years, outgoing State Secretary Marnix van Rij (Tax and Tax Authority) reported to parliament. The Tax Authority will come under a magnifying glass to “achieve a sustainable improvement in the protection of personal data of citizens and companies.”

In recent years, the watchdog has often investigated the Tax Authority for improperly handling personal data. Reports about the Risk Analysis Model (RAM) database were the final straw that prompted the AP to set up a “supervision arrangement” at the Tax Authority.

Last year, it emerged that the Tax Authority was collecting personal data from taxpayers on a large scale until 2021 for supervision and combating fraud. According to AP, this often happened without any basis. The data was stored in the RAM. The AP is already investigating this.

“The AP set up a supervisory arrangement to monitor and control the actions of the Tax Authority, but also to provide guidance in sustainability improving the protection of personal data,” said Van Rij. The AP will look at culture, risk models, and data exchange, among other things.

The watchdog will also talk to the Tax Authority. “Based on these conversations, the AP will decide which actions it considers necessary,” said the State Secretary. For example, the watchdog can request interim investigations of new processes and systems at the Tax Authority.