The Gelderland Court has ruled that the tax authorities must pay statutory interest on interest payments not paid on time.
Case
On August, 2009 the inspector automatically reduced the 2007 provisional company tax assessment. The inspector did not pay interest on the amount reduced. The interested party has then lodged an appeal against the failure to pay interest. On 22 December 2011 the inspector ruled on the appeal, and paid interest to the taxpayer.
Following this the taxpayer has then charged the inspector with not paying statutory interest over the interest.
Court
The Gelderland Court ruled that the inspector correctly paid interest on the reduced company tax amount over the period of 1 July to 31 December 2007. This fact was not in dispute.
According to the Court the obligation to pay interest on the reduction of company tax started on 22 August 2009. This obligation was only met by the inspector on 21 December 2011. Thus the inspector is obligated to accrue statutory interest from 6 weeks after 22 August 2009 (i.e. 4 October 2009) to the time actual payment is made.
The appeal of the inspector on the legal ruling of the charging of interest on under- or overpaid tax was rejected by the court. This was because the basis for the charging of interest in this ruling is the tax payable. In this particular case the basis for the statutory interest is the interest on overpaid tax. This is why the appeal was rejected on these grounds.
Direct Cassation
Direct cassation has been requested by the tax authorities in appeal against the decision.
Source: Fiscaaltotaal