Company car tax fraud rampant

Random checks by tax inspectors show that at least 40,000 people are using their company cars more than they should be and are therefore liable for tax, Trouw reports on Friday.

Company car owners who use their cars privately for more than 500 km a year have to pay tax based on the catalogue value of the vehicle. People who declare false private mileage can be fined at least €5,000.
In total, 250,000 out of two million company car drivers have signed a declaration saying they hardly use their car for personal journeys.
But spot checks by tax inspectors found that while some motorists made fake declarations and turned back kilometer counters, others went as far as swapping car number plates , the paper said.

Lies
In November, the tax office said it imposed surcharges totalling €12.6m on lease car drivers who lied about how often they use their company car for private purposes.
Junior finance minister Jan Kees de Jager said earlier this year he was planning to crack down on company car fraud.
Tax inspectors use cars fitted with special scanners in an effort to track down people who use their company cars for private business. Festivals, out-of-town shopping centres, sports events and other popular destinations are targeted in particular.