Algorithm Multiple absences

Dutch Tax and Customs Administration

The 'Multiple Absenteeism' algorithm helps Tax and Customs Administration staff to monitor withholding agents' timely compliance with the wage tax return obligation. The Multiple Absenteeism algorithm helps Tax Administration employees to respond to wage tax returns that have not yet been filed.

Last change on 22nd of April 2025, at 15:30 (CET) | Publication Standard 1.0

• Publication category: Impactful algorithms
• Impact assessment: Field not filled in.
• Status: In use

General information

Theme

Public finance

Begin date

Field not filled in.

Contact information

[e-mail]

Link to publication website

https://over-ons.belastingdienst.nl/onderwerpen/omgaan-met-gegevens/algoritmeregister/

Link to source registration

https://over-ons.belastingdienst.nl/onderwerpen/omgaan-met-gegevens/algoritmeregister/algoritme-meerverzuim/

Responsible use

Goal and impact

The Tax Authority checks withholding agents for correct and complete declaration and payment of payroll taxes. Payroll taxes consist of wage tax, national insurance contributions, employee insurance and the income-related Healthcare Insurance Act contribution. Withholding agents (such as an employer, pension fund or benefits agency) deduct the wage tax and national insurance contributions from their employee's pay and, in some cases, the income-related healthcare insurance contribution. They remit this to the tax authorities. The employee insurance contributions and usually the income-dependent healthcare insurance contribution are not deducted from the employee's wage, but are paid by the employer to the Tax Administration.

A withholding agent must periodically submit a wage tax return digitally to the Tax and Customs Administration. The algorithm looks at all withholding agents that have not submitted a wage return in 3 consecutive periods. By not filing a wage return, the withholding agent has not complied with the obligation to file a return and is in default.

Based on the clues from the algorithm, the handler can assess the default in the obligation to file the return. It is the Tax Administration's handler who can ultimately contact the withholding agent to ensure that the return is still filed.

Considerations

Monitoring compliance with the obligation to file returns is important for the withholding agent because it allows the payroll returns to be processed correctly. We want to do this carefully. The algorithm can support a Tax Administration employee in this. As a result, the assessment is more careful, efficient and uniform. Supervision can also prevent the wrongful imposition of a declaration obligation.

Human intervention

Human intervention in the Tax Administration context implies that a competent and knowledgeable employee plays a substantial role in decision-making.

The operation of the algorithm always involves human intervention. The algorithm detects and selects. It is the Tax Administration employee who makes the decision whether to contact the withholding agent.

Risk management

The General Administrative Law Act (Awb) requires the government's actions to be transparent and lawful. The Tax Administration observes the general principles of good governance when applying and developing algorithms.

The algorithm uses data collected under various tax laws. As required by the AVG, no more data is used than necessary.

The selection rules are reviewed periodically and adjusted if necessary to remain compliant with laws and regulations.

Legal basis

1. General State Tax Act:
2. General Administrative Law Act:
3. General Data Protection Regulation (Implementation) Act:
4. General Data Protection Regulation:
5. Payroll Tax Act 1964:
6. Social Insurance (Funding) Act:
7. General provisions Citizen Service Number Act:
8. Archives Act 1995:
9. Unemployment Act:
10. Sickness Act:
11. Work and Income according to Labour Capacity Act:
12. Disability Insurance Act:
13. Health Insurance Act:

Links to legal bases

• Algemene wet inzake rijksbelastingen: : https://wetten.overheid.nl/BWBR0002320/
• Algemene wet bestuursrecht: : https://wetten.overheid.nl/BWBR0005537/
• Uitvoeringswet algemene verordening gegevensbescherming: : https://wetten.overheid.nl/BWBR0040940/
• Algemene verordening gegevensbescherming: : https://eur-lex.europa.eu/legal-content/NL/TXT/HTML/?uri=CELEX:32016R0679
• Wet op de loonbelasting 1964:: https://wetten.overheid.nl/BWBR0002471/
• Wet financiering sociale verzekeringen:: https://wetten.overheid.nl/BWBR0017745/
• Wet algemene bepalingen Burgerservicenummer:: https://wetten.overheid.nl/BWBR0022428/
• Archiefwet 1995: : https://wetten.overheid.nl/BWBR0007376/
• Werkloosheidswet:: https://wetten.overheid.nl/BWBR0004045/
• Ziektewet:: https://wetten.overheid.nl/BWBR0001888/
• Wet werk en inkomen naar arbeidsvermogen:: https://wetten.overheid.nl/BWBR0019057/
• Wet op de arbeidsongeschiktheids verzekering:: https://wetten.overheid.nl/BWBR0002524/
• Zorgverzekeringswet:: https://wetten.overheid.nl/BWBR0018450/

Elaboration on impact assessments

• Privacy and AVG

The use of data is tested against the General Data Protection Regulation (AVG). Reviewing personal data reveals any privacy risks and allows appropriate measures to be taken.

The AVG prescribes that no more data should be used than necessary. This is called data minimisation. The Tax Administration regularly examines whether the data used are still necessary and may therefore be used.

• Use of special personal data

The More Absenteeism algorithm does not use special personal data.

• Equality and non-discrimination

The selection rules in the algorithm are tested against non-discrimination legislation. Processing as little personal data as possible reduces the risk of direct discrimination. Employees involved in developing and managing the algorithms receive training on data protection and bias.

Operations

Data

• Identifying data (including LH number)
• Wage tax relationship data
• Wage tax levy data

Links to data sources

• Identificerende gegevens (o.a. LH-nummer): Belastingdienst
• Relatiegegevens Loonheffingen: Belastingdienst
• Heffingsgegevens Loonheffingen: Belastingdienst

Technical design

The algorithm consists of selection rules created by content experts based on laws, regulations and expertise.

The algorithm is not self-learning. That means it does not evolve as it is used.

External provider

The algorithm was developed by Tax Administration staff and is also maintained internally.