Collection of taxes and liability

Collection measures

The tax collector may decide to institute collection measures. These measures are, for the most part, set out in the Dutch Collection of State Taxes Act 1990 (link to page in Dutch). The tax collector will start by instructing the taxpayer to pay the tax debt. If the taxpayer fails to comply, the Collection of State Taxes Act offers a number of options for holding third parties liable for the tax debt. If the taxpayer is an entity with legal personality, for instance, its directors may be held liable for some of the entity's tax debts if they are guilty of mismanagement. This is governed by complex statutory provisions in which reporting inability to pay plays a crucial role.

The list of liability provisions is practically endless. They include vicarious supply chain and hirer's liability, the liability of substantial interest holders and the liability of members that form a fiscal unity for VAT. The tax authorities have preference over most other creditors.

Open collection system

And if that were not enough, the tax authorities can also make use of an open collection system which means that they can use the collection options that are open to “regular” creditors. They can, for instance, institute bankruptcy proceedings against a taxpayer or bring an action against a taxpayer on the basis of an unlawful act.

Specialist support in tax collection procedures

Recovery law is a highly complex area of law that grants a range of far-reaching powers to the collector. These powers can range from seizing property to collecting taxes and fines. At the same time, it is often observed that legal protection against collection measures leaves much to be desired. This is precisely when the assistance of a lawyer specialized in this field is indispensable.

If you are confronted with collection measures or have questions about your rights and options in the collection process, do not hesitate to contact one of our specialists. Our team of experienced lawyers are ready to support and advise you on these complex and often challenging issues. We understand the uncertainty that comes with debt collection problems and will do everything we can to help you find a solution that is right for your interests.