File inspection with the tax authorities

File inspection with the tax authorities

A taxpayer has the right to review their own tax file with the tax authorities. If an inspector has issued an additional assessment or recovery assessment or if it differs from a return filed by the taxpayer (or his accountant, or better: his tax specialist), it's nice to know why the deviation is made. For a taxpayer, it is relevant to know what information the tax authorities have about him/her and why assessments are being imposed.

What information does the inspector have in his possession? Is this information important to me?

News: inspection, file inspection, tax authorities

In the appeal phase, but also if a penalty has been announced or imposed, the taxpayer has the right to view his complete file with the tax authorities. In practice, the complete file is not always provided by the tax authorities. Access to the entire file is regularly refused and, for example, only “limited” part of the correspondence is provided. The Supreme Court already made clear in 2015 and 2018 what “documents related to the case are”. AG IJzerman has also shed light on this issue in 7 cases. When it comes to FIOD information, this article is a great read for tax specialists.

There is also a right to copies - copies of the documents. This procedure in 2021 will once again clarify what should and should not be provided. Information obtained from a third-party investigation must also be provided to the taxpayer. In these proceedings, the judge states that all information must be provided within 4 weeks. We notice that the judge is also a bit done with “playing hide and seek”. If the information is not provided within 4 weeks, a penalty payment of €10,000 per week will be imposed. The tax authorities must also reimburse the actual court costs, which is something we rarely see.

When can you view your tax file?

It can be nice to check your tax file with the tax authorities before you file an objection. However, the General Administrative Law Act states that you have the right to view files during the hearing phase/hearing (article 7:4 General Administrative Law Act). At this stage, your appeal has already been submitted.

Before and during the objection phase, you therefore have - under Dutch law - no right to view your tax file.

If there is a penalty (or announcement of a penalty), different rules apply. From the moment a penalty is announced, the inspector must provide a taxpayer/interested party with access to his penalty file at his own request (article 5:49 General Administrative Law Act).

European law and access to the tax file

Under European law, you have an earlier right to view your file. Under the Charter (Article 41), everyone has the right to access the file concerning him (Article 41 (2)). This charter applies within the European Union and, according to reasonably established case law (Court of Justice), these rules apply almost automatically to the Netherlands (see also the Court of Justice ruling dated 26 February 2013, for enthusiasts: Akerberg Fransson procedure). This line is underlined by various “scholars” and is not always accepted by the tax authorities.

Still having access to your file

On the basis of the general principles of good administration, it is reasonable to know why the tax authorities issued you an additional assessment or recovery assessment. It is also nice to know why your declaration is being deviated from.

Interim injunction: because you do not have access to your (trial) file, your interests are harmed. This is a reason to request access to your file through an interim injunction.

Ask the tax authorities for inspection: the tax authorities usually cooperate with a file inspection during (or before) your appeal