A limited liability company was late with filing its corporate income tax return with the Dutch tax office, even the reminders were neglected, hence the standard EUR 2.460 fine for late filing was issued by the Dutch tax office plus an ex officio assessment. The concerning BV company filed a complaint against the fine and the ex officio assessment, was it successful?
Yes it was. Both the corporate income tax return fine and the ex officio assessment were reduced. The fine was reduced from EUR 2.460 to EUR 500 and the ex officio assessment to be paid was reduced to the actual loss made by this limited liability company.
First offender fine corporate income tax
The Dutch tax office has set a standard for fines for late filings of corporate income tax returns starting from EUR 2.460 for the first time up to a maximum of EUR 4.920. Even though this was the first time of this company to be late with the corporate income tax filing the court nevertheless decided a lower first offenders fine of EUR 500 was applicable.
Among the reasons was the poor financial base of the concerning company.
The fact that the ex officio assessment was updated to the actual result of the company is more or less logic, hence not a surprise for us.
Late filing corporate income tax return
The above mentioned company was ‘lucky’ not to be charged with the general fine of EUR 2.460. But this ‘reduced fine pass’ has now been used. The next time this company is late with filing, the EUR 500 first offenders fine does not apply and we have the opinion the tax office also will not charge the lowest fine of EUR 2.460, but will step up immediately to a higher amount, as the company has been warned already and has been late already.
Corporate income tax return file in time
We have the opinion that it is not necessary to be late with the corporate income tax return. Especially when you should know that the final deadline for the Chambers of Commerce filing of the annual report is February 1 the following year. If not filed in time, this fine is EUR 900. The tax deadline under the extension rule is even after this February 1 Chambers of Commerce deadline.
Orange Tax Services team
If you find it difficult to meet the deadlines set by both the Dutch tax office and the Chambers of Commerce, contact the Orange Tax Services team and we will be glad to assist you in meeting the deadlines set.