The Dutch Tax Authorities has too little capacity to (periodically) audit all taxpayers. Nowadays, the tax investigator only calls in when there is a reason to do so. This can occur if, for example, a citizen gave a tip or if information was obtained from another audit or another country or if there is question of an increased risk due to the industry in which the taxpayer is active.
The Dutch Tax Authorities disposes of various advanced audit methodologies, whilst the audited taxpayer is often not informed of their legal position and the imminent pitfalls. The authorities of the investigator are particularly far-reaching. Any and all documents that may be relevant to the taxation must, if so requested, be made available to the Dutch Tax Authorities by the taxpayer. Moreover, the (digital) administration can be inspected thoroughly, and an audit can also be conducted at third parties.
As the rights of the inspector are extensive and far-reaching, and the obligations of the taxpayer are considerable, a well-balanced step-by-step plan should be drawn up. Each and every audit requires customisation in order to optimise the position of the taxpayer. A diligent balancing of the facts and circumstances is indispensable. The attorneys-at-law at our firm have extensive experience in outlining a strategy during an audit. This always takes place in consultation with the client, and usually also with the tax consultant(s) and accountant(s).
