People who did not object in time to the unlawful Box 3 wealth tax will not receive a refund. The Supreme Court confirmed this ruling, ending the hopes of more than a million non‑objectors who wanted to benefit from the 2021 “Christmas Judgment.” The decision follows the advice of the Advocate General, who argued that compensation should only be granted to taxpayers who formally objected to their Box 3 assessments for the years 2017–2020.
It matters
Many taxpayers requested a reduction of their Box 3 assessments after the Supreme Court ruled in 2021 that the system introduced in 2017 violated the European Convention on Human Rights. Those who had objected on time were compensated if the notional return used by the tax authorities exceeded their actual return. But others, who did not object, also wanted refunds. Four such cases reached the Supreme Court, and two have now been decided.
Compensation
The key question was whether the Tax and Customs Administration can reduce a tax assessment that has already become final. Normally, this is possible if the assessment is demonstrably too high. However, there is one exception – this does not apply when the mistake is the result of a court ruling made after the assessment became final. That is exactly the situation with the 2021 Christmas Judgment. Because the unlawfulness was only established later, non‑objectors cannot rely on it retroactively. The Supreme Court acknowledges the outcome is “disappointing” for those affected.
Equal treatment?
Complainants argued they should be treated the same as taxpayers who objected. The Supreme Court disagrees. The two groups are not in the same legal position, and therefore, equal treatment does not apply.
A costly affair
Compensating timely objectors already costs the government billions of euros. Extending compensation to non‑objectors would have added a massive financial burden. Earlier estimates suggest that well over one million people fall into this non‑objector category.
@anp | NEWSBRAINPORT
