Dutch Authorities Brace for Appeals on Corporate Tax Interest

The Dutch tax administration is dealing with thousands of appeals from businesses after the country’s supreme court ruled that a 2022 increase in the interest rate for late or underreported corporate tax filings was invalid.

The increase to 8% from 4% violated the general legal principles of proportionality and equality, the Hoge Radd, the Netherlands’ high court, said Jan. 16, setting up a wave of adjustment claims from companies.

• Interest rate increases were motivated by budgetary objectives, the court said—not a substantial reason to charge companies twice as much interest as other taxpayers.
• The Dutch tax administration has so ...