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Tax office must prioritise sorting out its IT problems, says minister

February 21, 2023
Photo: Joep Poulssen
Photo: Joep Poulssen

The tax office is not up to making any more major changes in the tax system until 2026 when a major overhaul of its IT systems has been completed, junior finance minister Marnix van Rij has told MPs.

For the next three years, efforts will focus on the complete renewal of the system and changes which have already been agreed, and that means new plans will have to be delayed, Van Rij said in a briefing.

The NRC reported last week that the past policy changes disrupted tax office planning and slowed down the modernisation of the system, making the problems worse.  The paper based its claims on internal department documents and the publication prompted questions in parliament.

The decision to focus on the update means the MPs and ministers will have to accept some policy initiatives will take longer, Van Rij said in Tuesday’s briefing.

‘‘Unlike in the past, the tax office wants to stop new legislation pushing the modernisation of IT systems into second place,’ Van Rij said. ‘Parliament and the cabinet will have to give the tax office the scope to successfully complete all the improvements that have been initiated in the near future and according to plan.’

For example, the overhaul of the current asset tax package, prompted by a court ruling, is likely to take to the end of 2026 to fully implement, Van Rij told MPs.

At the end of 2021, the Supreme Court ruled that the asset tax must reflect actual rather than notional earnings but this January, Van Rij warned that the plans for reform are too complicated and suggested a plan B.

MPs are due to debate the tax office IT problems with the minister on March 23.

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