Companies with operations in the Netherlands could be forced to hand over all information that tax inspectors consider potentially relevant to the collection of taxes.
The Dutch secretary of finance Joop Wijn has released a proposal that would give tax inspectors legal powers to demand information. The proposal will be debated in parliament, but there has been no indication of when it will enter into force.
"The effect that it will have on the relationship [with the tax authorities] is no major issue for me," said Rob Frankfort, taxation and treasury manager at Plantronics, a manufacturing company in the Netherlands.
"I have good contact with both the local inspection as well as the ruling team in Rotterdam," Frankfort added. "If there is a need for information from the tax office side I am more than willing to assist."
But Frankfort recognized that the new rules could increase companies' tax compliance burdens: "This is in fact a further strengthening of information requests and depending on the nature of the details to submit it might have a negative impact on the paperwork companies need to prepare and as such is not so positive."
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