Additional assessment and assessment by the Tax Authorities

Have you also received an additional assessment for 2022? Even if you have already paid your income tax for a long time, the tax authorities can send you an additional assessment or assessment as a tax assessment. There may also be a fine on top of that. Fortunately, the additional tax assessment and assessment are subject to strict rules and requirements. The tax authorities will have to provide evidence. What requirements apply to the tax authorities’ additional assessment and assessment? An additional assessment also offers opportunities because you can also object to items to which you have not yet objected.

Additional assessment or additional tax assessment by the Tax Authorities via additional assessment

An additional assessment and additional assessment have in common that it will cost you extra money. But they are also two different things:

  • You may receive an additional assessment if the withholding of payroll tax, premiums and other employee levies is too low;
  • An additional assessment concerns your total income tax return, all items.

An additional tax assessment from the Tax Authorities

An additional tax assessment can be imposed if the previous tax assessment was too low or no tax assessment was wrongly imposed. A number of requirements apply:

  • The additional assessment can be submitted within five years after the tax year plus any deferral of tax returns. When it comes to foreign assets, this is twelve years.
  • If the previous tax assessment was incorrect due to an error, it must also be reasonably recognizable to the taxpayer that an error has been made. The taxpayer does not have to be Einstein, but it is assumed that the person concerned has an average knowledge of tax law. With a deviation of at least 30%, an error is considered to be reasonably apparent (AWR 16.2.c).
  • In principle, the evidence must involve a new fact or bad faith on the part of the taxpayer or tax advisor.

The tax inspector has found a new fact

The requirement for an additional assessment is that there must be a new fact, this requirement does not apply to an additional assessment. But what do we mean by a new fact? The assumption is that the Tax Authorities did not know and did not reasonably need to know the fact on which the additional assessment is based. Whether you knew the fact is therefore irrelevant. The inspector should have assumed that your tax return was correct. After all, the Tax Authorities are not obliged to thoroughly review every tax return. Tax returns are often processed completely automatically and the tax authorities simply need to thoroughly review a number of tax returns and files. The choice for auditing a particular tax return is often based on the focus that the Tax Authorities use in a particular year or on major changes that have come to the attention of the tax authorities. The tax return for which an additional assessment was issued did not necessarily fall under this select group. However, case law that has since changed does not provide grounds for additional assessment.

What new fact or facts are involved?

A new fact may emerge retroactively through your tax return in a later year. Suppose the tax authorities notice inaccuracies in your tax return and therefore start searching your previous income tax returns. Errors can then also appear there that make additional assessment possible. Or you can report errors yourself. New facts may emerge from a foreign tax authorities. A book search can yield new data. Additional assessments may not be made if an inspector has simply not done his job properly and the error could have been corrected earlier if the task had been carried out normally. Then there is official negligence, which is again no reason for an additional assessment.

You were in bad faith

Sometimes a new fact is not really necessary. If you have demonstrably acted in bad faith, deliberately acted incorrectly and did not provide the tax authorities with the correct information, a new fact is not necessary. If there are tax partners and the deductions do not add up to 100%, then no new fact is necessary, because that is patently incorrect. Finally, an additional assessment is considered reasonable if the old tax assessment was 30% lower than the new one after correction.

Object to additional assessment

You can object to an additional assessment. You may also encounter new facts yourself. You may only now realize that you have entered a deductible item incorrectly to your detriment. Moreover, you do not have to find that you were in bad faith. The latter is not unimportant, because if the tax authorities believe that you did it all on purpose, you can also be imposed a hefty fine. Especially if it has been noticed before. A default penalty can be up to 300%, including on your 2022 and 2023 tax return.

Additional tax for 2015 and 2016

A supplementary assessment was issued in no time, and 2015 was an exceptional year. In 2015 you submitted your income tax return for 2014, but it was already known at that time that not all tax measures had been included in the Tax Authorities’ tables, which meant that many could expect a high additional tax in 2014 or when filing their income tax return. The late agreement with part of the opposition in October 2013 led to adjustments in, among other things, making the general tax credit and employment tax credit income-related. Because there was a good chance that you received too much net salary in 2014 and therefore had to repay it, you were given respite with regard to the fine that year, there was no additional assessment. Moreover, you were even given a four-month deferment of payment. It was seen as an error by the tax authorities about which there was little you could do because no tax assessment had yet been imposed. The Tax Authorities do not give away gifts very often, so be on time with your tax return in 2020 and 2021.

Deferment of payment 2022 and 2023

In 2022 and 2023 you will have to be on time with your income tax return again and an additional tax may be imposed if you have deliberately entered the wrong information. Furthermore, a tax refund or an additional tax assessment is possible, depending on whether you have paid too much or too little wage tax. Don’t wait too long to pay. If payment is a problem, you can ask the Tax Authorities for a payment arrangement.

read more

  • Earn tax-free in 2019, 2020 and 2021