Dutch MP Thierry Baudet ordered to repay €41,595 after tax office error

The Dutch Tax Authority failed to inform the Tweede Kamer that Thierry Baudet, leader of Forum voor Democratie, must repay 41,595 euros from his 2021 parliamentary income. The parliamentary clerk will now move to recover the amount from Baudet.

“The notification process did not go as it should have,” a spokesperson for the Tax Authority acknowledged after questions from de Volkskrant. Baudet is the first Tweede Kamer member required to return the maximum recoverable amount under existing regulations.

Dutch lawmakers are allowed to earn additional income outside of their parliamentary work. However, if their earnings exceed 14 percent of their parliamentary salary—about 18,000 euros—they must return a portion of their parliamentary compensation. If extra earnings exceed a certain threshold, they can be required to repay up to a third of their annual parliamentary salary, which can total approximately 100,000 euros.

By law, Tweede Kamer members must report their outside earnings to the Tax Authority annually. If they refuse to cooperate within six months, they are automatically required to return a third of their salary. In 2021, Baudet chose this option on a form submitted to the Tax Authority, stating that he objected to the Tweede Kamer interfering with members’ finances. “The system reflects a poor understanding of democracy,” Baudet has previously argued.

The form explicitly warns lawmakers in bold letters: “NB: In this case, the maximum deduction applies!” However, due to a reported administrative oversight, the deduction was never enforced.

The error was uncovered due to inconsistencies in official figures obtained by de Volkskrant. According to Tweede Kamer records, only one lawmaker has ever refused to disclose their earnings, while the Tax Authority’s records indicate two such cases. Earlier reports from BNR had already revealed Baudet’s refusal to declare his outside income in 2021.

The Tweede Kamer’s parliamentary clerk was supposed to implement the salary reduction but never received official notice from the Tax Authority. “We will now formally notify the clerk,” a Tax Authority spokesperson said. The clerk will then instruct Baudet to repay the 41,595 euros.

The overlooked deduction reportedly highlights the bureaucratic complexity surrounding lawmakers’ outside earnings. Under the Compensation Act, Tweede Kamer members must report their earnings from the previous calendar year within six months. Typically, lawmakers receive a form from the Tweede Kamer’s HR department urging them to complete it. If they fail to do so, they are automatically subject to deductions.

However, the process is largely procedural. The special VIP division of the Tax Authority in The Hague receives the forms but does not verify their accuracy. Instead, the Tax Authority relies on lawmakers’ annual income tax returns, which may take years to process. Only if a lawmaker explicitly refuses to disclose earnings—like Baudet did—is an immediate salary reduction enforced.

The exact amount of Baudet’s outside earnings is unknown. The Tax Authority does not disclose such information.

Although Tweede Kamer regulations require members to publicly list all outside earnings in a public register, Baudet has repeatedly refused to comply. His defiance led to a one-week suspension from the Tweede Kamer in 2022. Despite this, he continues to keep his income details private.

Speaking to de Volkskrant, Baudet suggested he might reconsider his stance. “These are very expensive principles,” he said.