Target group coding

Municipality of Rotterdam

When a Rotterdam resident has a tax debt, the municipality uses this algorithm to determine the best collection strategy. This is based on the payment history of the Rotterdam resident.

Last change on 18th of July 2024, at 15:12 (CET) | Publication Standard 1.0

• Publication category: Impactful algorithms
• Impact assessment: IAMA, DPIA
• Status: In use

General information

Theme

Public Order and Safety

Begin date

10-2022

Contact information

[e-mail]

Link to publication website

https://algoritmeregister.rotterdam.nl

Link to source registration

https://algoritmeregister.rotterdam.nl/p/Onzealgoritmes/53761720551735701

Responsible use

Goal and impact

Get in touch with Rotterdam residents with tax debt in a fast, simple and least expensive way for an appropriate way to collect tax money.
The target group code assigned by the algorithm influences the type of writ of execution. Namely: by post or with a tax bailiff. A tax bailiff ensures that there is contact earlier, so that the Rotterdam resident with tax debt can get help. We call that social debt collection.

Considerations

It depends on the payment behaviour of the Rotterdam resident whether the classification of the target group code increases. The free reminder is an extra service, an opportunity that every Rotterdam resident with a tax debt receives. This is followed by collection costs via a reminder and writ of execution. Due to the collection costs, a Rotterdam resident with a tax debt increases in classification of the target group code. The reasons why the municipality applies the target group code and associated collection strategies stem from a clear objective. Personal contact and social collection are important here.

Human intervention

There is no human intervention up to the bailiff. From the human dimension, a collection officer can prevent a visit from the bailiff. The collection officer does this in consultation with the bailiff. The Rotterdammer does not know its own target group code. From the risks found in the IAMA, the municipality does communicate on the pay-on-time web page.

Risk management

• Human contact is missing
• Correction is only done from municipal systems
• Process is difficult to explain
• No communication about process to citizen
• Rotterdammer does not know his own code

Legal basis

11.5 collection guidelines (free collection) and 1.1.6 collection guidelines (efficient collection)

Impact assessment

• IAMA: https://www.rijksoverheid.nl/documenten/rapporten/2021/02/25/impact-assessment-mensenrechten-en-algoritmes
• Data Protection Impact Assessment (DPIA)

Operations

Data

Payment history

Technical design

According to the law, a municipality has various measures to collect municipal taxes. The policy of the municipality of Rotterdam is to choose the simplest, fastest and least expensive method. This applies both from the perspective of the Rotterdammer with tax debt and from the municipality. This principle is established in the policy rules (collection guideline). The result of the elaboration of these policy rules are the target group codes with the various measures (collection strategies).

The municipality chooses the best way to quickly get in touch with the Rotterdam resident with tax debt. That is why there are various measures. The municipality looks at the payment behaviour of the past 3 years for this. This is done on the basis of the imposed collection costs: have reminders and/or writs of execution been sent before. The taxpayer is in target group code 1, 2, 3, 4, 6 or 7. The criteria for being in a certain target group are the same for everyone. Every Rotterdam resident with a tax debt receives a free reminder, regardless of the target group code. This is followed by collection costs via a reminder and writ of execution.

Due to the collection costs, a Rotterdam resident with tax debt increases in classification. The target group code has an influence on the type of writ of execution. Namely: by post or with a tax bailiff. A tax bailiff ensures that there is contact earlier, so that the Rotterdam resident with tax debt can get help. We call that social collection.

An employee cannot manually change the target group code.

External provider

Functional Tax Management