State did not drop tax fraud expert during benefits affair

Fiscal, News

December 8, 2023 by Accountancy This Morning

The Dutch State has adequately protected an employee of the tax authorities in Eindhoven during the benefits affair, the Oost-Brabant District Court finds. The official asked for termination of his employment contract and compensation, but the subdistrict court rejects the compensation. However, he will receive his requested dismissal and the termination allowance offered by the State.

Allowance affair

The employee works for the tax authorities and was added to the investigation team to combat fraud, the Combiteam Approach Facilitators (CAF team), in 2013. As a member of the CAF team, he did a book search (called CAF-11) in 2014 into childminding agency Dadim's tax returns. He also conducted a third-party investigation into the questioning parents affiliated with Dadim. After the book investigation and third-party investigation, the tax authorities, Department of Benefits, stopped the childcare allowance for the parents affiliated with Dadim. Many of these parents got into trouble because they were no longer able to pay for childcare. CAF-11 was the reason for the benefits affair to become known.

Complaint

On February 17, 2021, the lawyer of parents who were affiliated with childcare agency Dadim filed a complaint against individual officials, including the official in this case. There were also complaints about the monitoring visit he carried out. After all these tax officials were heard by an advisory committee, the complainant decided to withdraw the complaint on 15 March 2022. The employee then requested that the draft advice drawn up by the advisory committee be issued, because he believes that this advice could relieve him. After invoking the Open Government Act, the State issued a blank (with removed text) draft advice. The employee has been sitting at home for some time now with what he says is serious psychological complaints. That is why he now asked the subdistrict court to terminate his employment contract and award compensation from the State.

Tax Office Officer's position

The tax officer states that he was unfairly attacked on his integrity, work and reputation and that he was not given the opportunity to defend himself. He says he has been publicly pilloried and the State does not want him rehabilitation. According to the man, he did his job well and his employer made him 'fall like a brick'. He states that his employer has not protected him against the unjustified allegations and that, as a fraud expert, he must be able to work in a safe environment.

District Court Judgment

The subdistrict court will terminate the employment contract on 1 March 2024, but the tax officer will not receive the fair compensation he asked for. According to the judge, everything that the parties have put forward over and over again does not show that the employee is not sufficiently protected and that the State let him fall like a brick. It is not certain that the Secretary of State's communication contributed to the negative image towards the CAF team, as the employee states. At several times, it was publicly stated that employees acted in good faith. The judge also takes into account that the State was aware of the impact that the declaration would have on the employees of the tax authorities. He has tried to guide and support all employees (including the members of the CAF team) as much as possible from his political responsibility, but certainly also from his employer's responsibility, including by communicating externally but also internally that the report does not concern individual officials and that they will never be blamed personally. More can't be expected from the State as an employer, the subdistrict court finds. If the employee decides to withdraw his request for termination, the State can be expected to try to repair the breach of trust experienced by the employee with the tax authorities and the government. If this does not work, the parties can jointly explore relocation options. After all, the State is a major employer with many relocation options for employees.

‍District Court of Oost-Brabant, ECLI:NL:RBOBR: 2023:5637

Tags: Tax authorities, equitable compensation, fraud, resignation, allowance affair, transition payment