People who deliberately provide false information in order to gain an unlawful advantage are committing tax fraud. The government takes measures against people who abuse and misuse regulations to commit fraud.
Tax evasion is a form of fraud. So is the wrongful use of grants, income-related support and benefits. It is important to stay one step ahead of fraudsters.
Tax fraud costs the Dutch state many billions of euros every year. It also undermines the public’s sense of justice and confidence in the government.
The government is taking action to prevent fraud with public funds and tackle it more effectively. It has introduced measures relating to:
- social services: enforcement, prevention and cooperation have been stepped up;
- benefits and tax allowances: the time limit to decide on benefit applications has been extended;
- student finance: measures have been introduced to prevent the misuse of grants intended for students living away from home and of the single-parent tax credit;
- healthcare: supervision and investigation in the healthcare sector have been strengthened;
- grants: more effective verification visits are being carried out.
International efforts against tax evasion
The Dutch Tax and Customs Administration works with foreign tax authorities to detect undeclared savings. It cooperates internationally to combat:
- tax evasion abroad by businesses;
- tax evasion abroad by private individuals.
Separate agreements have been made with the United States based on the Foreign Account Tax Compliance Act (FATCA). The Netherlands has made similar agreements with other countries in accordance with the Common Reporting Standard (CRS).