Inheritance tax risk model (RME)

Dutch Tax and Customs Administration

Inheritance tax has to be paid on part of the inheritances in the Netherlands. This requires the heirs to file an inheritance tax return. The amount of the tax depends on the size of the inheritance, the number of beneficiaries and the relationship between testator and beneficiary.

Last change on 5th of February 2025, at 14:12 (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/risicomodel-erfbelasting-rme/

Responsible use

Goal and impact

Inheritance tax has to be paid on part of the inheritances in the Netherlands. This requires the heirs to file an inheritance tax return. The amount of the tax depends on the size of the inheritance, the number of beneficiaries and the relationship between testator and beneficiary. For more information, see the website of the Tax Administration.

Since 2018, Tax Administration staff have been supported by an algorithm in assessing inheritance tax returns. The algorithm combines relevant data with the data from the return and identifies which parts of a return require attention. Inheritance tax assessments are imposed manually.

Considerations

The aim of the algorithm is to be able to allocate work at the right level and support the Inland Revenue employee with advice. In this way, the staff's available capacity is used in the best possible way. As a result, processors spend less time on returns that are completely correct and do not need to be checked. The inheritance tax assessment process has become more effective with the use of the algorithm.

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 and, if necessary, provides the employee with advice. It is the Tax Administration employee who makes the decision.

Risk management

The Tax Administration is taking several measures to manage the risks of using the algorithm.

• 1. Transparency

The Tax and Customs Administration publishes information about the algorithm in the Tax and Customs Administration's algorithm register and the Central Government's algorithm register.

This allows citizens to understand the use and operation of the algorithm.

• 2. Automated decision-making

The description of an algorithm explains this and also details the aspect of human intervention.

• 3. Privacy protection and legality

The Tax Authority ensures that the use of the data is assessed against the General Data Protection Regulation (GDPR).

The description of the algorithm also links to the applicable laws and regulations.

• 4. Responsibility

Using the Algorithm Register Policy Framework, the responsibilities and tasks when using algorithms are clearly described and secured.

• 5. Monitoring and evaluation

The operation of the algorithms is periodically tested. Based on this, selection rules can be adjusted.

Legal basis

• General State Tax Act
• General Administrative Law Act
• General Data Protection Regulation
• General Data Protection Regulation (Implementation) Act
• Income Tax Act 2001
• General provisions Citizen Service Number Act
• Archives Act 1995
• Inheritance Act 1956

Links to legal bases

• Algemene wet inzake rijksbelastingen: https://wetten.overheid.nl/BWBR0002320/
• Algemene wet bestuursrecht: https://wetten.overheid.nl/BWBR0005537/
• Algemene verordening gegevensbescherming: https://eur-lex.europa.eu/legal-content/NL/TXT/HTML/?uri=CELEX:32016R0679
• Uitvoeringswet algemene verordening gegevensbescherming: https://wetten.overheid.nl/BWBR0040940/
• Wet Inkomstenbelasting 2001: https://wetten.overheid.nl/BWBR0011353/
• Wet algemene bepalingen Burgerservicenummer: https://wetten.overheid.nl/BWBR0022428/
• Archiefwet 1995: https://wetten.overheid.nl/BWBR0007376/
• Successiewet 1956: https://wetten.overheid.nl/BWBR0002226/

Elaboration on impact assessments

The use of the data should be assessed against the AVG.

The AVG prescribes that no more data should be used than necessary. This is called data minimisation. The Inland Revenue regularly reviews whether the data used is still necessary and therefore may be used.

Operations

Data

• Inheritance tax return details
• Gift tax return details
• Identifying data
• Indication very wealthy persons
• Bank balances
• Real estate data
• Income tax return details (IH)
• Data ANBI Scheme
• Vehicle data
• Pre-consultation data
• Segregated Private Assets

Links to data sources

• Aangiftegegevens Erfbelasting: Belastingdienst
• Aangiftegegevens Schenkbelasting: Belastingdienst
• Identificerende gegevens : Basisregistratie Personen (BRP)
• Indicatie zeer vermogende personen: Belastingdienst
• Banksaldi: Baken
• Vastgoedgegevens: Kadaster & Landelijke voorziening WOZ
• Aangiftegegevens Inkomstenheffing (IH): Belastingdienst
• Gegevens ANBI Regeling: Belastingdienst
• Voertuiggegevens: Rijksdienst voor het wegverkeer (RDW)
• Vooroverleg gegevens: Belastingdienst
• Afgezonderd Particulier Vermogen: Belastingdienst

Technical design

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

The algorithm assesses the situation of the deceased person and heir through predefined rules.

The algorithm is not self-learning. This means that it does not evolve during its use.

External provider

The algorithm was developed in-house at the Inland Revenue and is also maintained internally.