The tax office is about to launch a major overhaul of its operations which could mean cutting up to 5,000 of its 28,000 jobs, broadcaster Nos reports on Tuesday.

The job losses are necessary because new computer systems have reduced the volume of traditional work with figures, sources at the tax office told Nos. At the same time, tax demands are increasingly accurate and tax avoidance has been reduced.

Tax minister Eric Wiebes has said several times he considers the service needs to reorganise. The director general of the department, Peter Veld, is also leaving the organisation on Tuesday, Nos said.

Every year, 1.6 million companies and 8.5 million private individuals have to file a tax return, generating around €150bn for the treasury.