Mass objection to “Box 3” income taxation for 2018

The Tax and Customs Administration is girding itself for huge numbers of notices of objection to the 2018 “Box 3” income taxation. In view inter alia of the pending mass objection proceedings for the tax years up to and including 2017, the Junior Finance Minister has decided to confer the same status of “mass objection” on the objections that are expected to be submitted in relation to 2018. The “mass objection” designation is to apply to all notices of objection in which the point of law is raised as to whether the investment yield tax at generic level is at odds with the right to peaceful enjoyment of property or the prohibition of discrimination as per the Protocol 1 to ECHR, the European Convention for the Protection of Human Rights and Fundamental Freedoms.

A selection is to be made, in consultation with tax intermediaries, from the incoming notices of objection, for adjudication by the Tax Court.

The Inspector of Taxes is to entertain the notices of objection in which additional points of dispute are raised (other than the above point of law) that have no bearing on the “Box 3” levy on an individual basis. Notices of objection in which it is argued that the inconsistency between the “Box 3” levy and the ECHR applies to the generic and individual levels alike will be split into a part that will, and a part that will not, be included in the “mass objection” proceedings.

Dutch version: Massaal bezwaar box 3-heffing 2018