Tax evasion

Someone who deliberately pays no tax or too little tax is committing tax evasion. This is prohibited in the Netherlands. 

Paying tax in the Netherlands 

If you work in the Netherlands, you pay tax on your wages. Everyone in the Netherlands does this. The government spends this money on education, healthcare and security. That is why it is important everyone pays their fair share. 

What is tax evasion? 

If someone commits tax evasion, they deliberately give false information to Belastingdienst or they deliberately pay no tax or less tax than they should. This tax could be income tax, corporate tax, VAT or inheritance tax. Most people who commit tax evasion are fined, and they still have to pay the tax they owe too. 

Why is tax evasion a problem? 

The government misses out on a lot of money - sometimes billions of euros - every year due to tax evasion. This money cannot be used to pay for education, healthcare or security. It also feels unfair: most people pay tax, but some people do not. That is why the government is cracking down on tax evasion. 

Who checks what, and who punishes tax evaders? 

Belastingdienst checks your tax return. The FIOD carries out investigations into cases involving fraud and black money. The Public Prosecution Service can take someone to court. The government can impose large fines and might start criminal proceedings. Belastingdienst can also publish information if a person or a business is knowingly involved in fraud. 

Examples of tax evasion 

• You do not declare wages from unreported employment in your tax return. 
• You say you made a donation but that is not true. 
• A business applies for a tax break it is not allowed to get. 
• Belastingdienst is not informed about an inheritance. 
• An entrepreneur does not pay VAT even though he has to. 

Preventing tax evasion 

• There are centres for reporting suspicious transactions that people can call. 
• Belastingdienst shares information with other countries so that fraud can be detected more quickly. 
• There is a voluntary disclosure scheme: the fine is likely to be lower if you report a mistake yourself than if Belastingdienst discovers it. 
• In the case of serious offences, Belastingdienst may publish the offender’s details. 

What can you do? 

Always be honest when you file your tax return. If you do not know how to file your tax return, ask Belastingdienst or an advisor for help. If you have made a mistake or forgotten something, report this as soon as possible. Be honest to avoid large fines and legal problems.