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2,500 Dutch Taxpayers to be Compensated for "Unjustified Audit Selection"

14 February 2024

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Approved Changes

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Netherlands

The Dutch Revenue Service is set to compensate close to 2500 individual taxpayers whose tax returns were selected for audit or verification for no justified fiscal motive. The selection follows from the very controversial use between 2012 and 2019 of a risk assessment methodology ("selectie aan de poort", or Gatekeeper) based on an automated application (Fraude Signalering Vorziening, FSV). The FSV operated on the basis of algorithms that were meant to detect anomalies indicative of potential tax irregularities. Taxpayers classified by the system in a higher risk zone -more than 270,000 of them during the period of operation of the...