- Ruling on Tax Interest Rate: The District Court of Gelderland upheld the imposition of a 4% interest rate on an additional VAT assessment, ruling that this rate aligns with good administration principles and is appropriate under existing tax laws, which set the rate before and after October 2020.
- Rejection of Market Rate Argument: The court dismissed the fiscal unity’s claim that the interest rate was excessive compared to the capital market rates, asserting that the tax interest rate is intentionally linked to the European Central Bank’s refinancing rate, rather than market rates, to discourage late tax payments.
- No Reduction for Excessive Corporate Tax: The court ruled that the tax interest should not be reduced based on the Tax and Customs Administration having prior access to funds from corporate tax assessments, emphasizing that tax interest serves a compensatory purpose rather than being a punitive measure. Additionally, the court awarded €1,000 in immaterial damages for a delay in processing.
Source: taxence.nl
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
