News item | 07-02-2024 | 4:00 pm
Most entrepreneurs have repaid their outstanding corona tax debt. Two-thirds of these debts have now been repaid by entrepreneurs and returned to the government coffers. At the same time, the Tax Authorities, together with business organizations, municipalities and the Chamber of Commerce, maintain as much contact as possible with 178,000 entrepreneurs who currently still have a payment arrangement and are often up to date with repayments. Where services and contact do not provide relief, collections have started where necessary since the autumn of 2023. This is stated in the letter to Parliament containing the latest status of outstanding corona debts that State Secretary Van Rij (Tax & Tax Authorities) sent to the House of Representatives today, prior to the Tax Authorities Commission debate.
In total, more than 400,000 entrepreneurs have applied for tax deferrals, and they have been granted corona tax deferrals worth 47.7 billion euros. Two-thirds of this has now been repaid. There is currently 11.5 billion euros outstanding within the payment scheme, among 178,000 entrepreneurs. In accordance with the Spring Memorandum 2023, the current expectation is that 2.5 billion euros will not be repaid. Despite various relaxations of the payment arrangement, such as the option to extend the payment term and the payment holiday, a group of approximately 55,000 entrepreneurs are not fully up to date and are in arrears with payments. They still participate in the payment arrangement.
Help remains available
The Tax Authorities started withdrawing corona payment arrangements this summer. To take sufficient account of the summer period, entrepreneurs were first given more time and space to pay the debt, file an administrative appeal or ask for help. The first reminders and writs for entrepreneurs who did not meet their payment obligations were sent from September 2023. During this process, it remains possible for entrepreneurs to ask for help from, for example, the Chamber of Commerce or Geldfit Business.
Up to and including the beginning of 2024, approximately 40,000 payment arrangements have been permanently withdrawn. Whether involved entrepreneurs can continue their business depends on company-specific factors and the financial situation. It remains important to the government that viable companies can still qualify for restructuring, even after withdrawal of the payment scheme. The relaxation of the restructuring policy will continue until April 1, 2024. In the event of a restructuring agreement, the Tax Authorities will settle for the same payment percentage that is due to unsecured creditors until that date.
Prioritization is necessary
The settlement of the corona tax debts, together with other developments such as the energy crisis and recovery operations, entails a significantly higher implementation burden for the Tax Authorities. With such large numbers of entrepreneurs involved, it is not possible to tackle all activities and collection measures at the same time. That is why choices are made in phases. This emphatically does not mean that entrepreneurs do not have to repay their tax deferral. Despite this prioritization, collection measures will be taken in phases for all entrepreneurs who do not meet their (corona) payment obligations. The Tax Authorities are currently working hard to recruit and train 300 additional people for broad collection work that can be deployed from 2024.
State Secretary Van Rij: “The deferment scheme for corona tax debts has been established in a special time, widely supported by politics and society. The deferment scheme was an effective means to help entrepreneurs in various sectors during a turbulent period. It is widely recognized and accepted that the Tax Authorities would face implementation challenges with these large numbers, and that not all the money will be returned. The Tax Authorities make choices in their work every day, and phasing is and remains necessary for the collection of corona debts. It remains the case that helping entrepreneurs always comes first. But anyone who thinks they do not have to repay their debts will in any case have to deal with collection from the tax authorities.”
The Tax Authorities continue to focus explicitly on help and support for entrepreneurs in problems. This enables entrepreneurs to remain in the payment arrangement for longer. This not only prevents essentially healthy companies from running into unnecessary problems. It also means that the Tax Authorities – at least temporarily – do not require collection measures. Finally, more money flows back to the government treasury.