Please note: The algorithm descriptions in English have been automatically translated. Errors may have been introduced in this process. For the original descriptions, go to the Dutch version of the Algorithm Register.
Invitation to file income tax (IH) return
- Publication category
- Impactful algorithms
- Impact assessment
- Field not filled in.
- Status
- In use
General information
Theme
Begin date
Contact information
Link to publication website
Link to source registration
Responsible use
Goal and impact
Every year, the Inland Revenue assesses which citizens are required to file income tax (IH) returns. Those who meet the conditions will receive an invitation to do so. This invitation entails a legal obligation to file a tax return.
In addition, there are citizens who are presumed to be entitled to a refund. In those cases, there is no obligation to file a return, but it may be advantageous to do so. This assessment is also done within the same process, but does not lead to an invitation.
The purpose of the algorithm is to automatically determine whether a citizen has an obligation to file a tax return. This is done on the basis of predefined selection rules and data from different administrations.
The assessment uses several components that:
- Determine the citizen's income and tax situation;
- Check whether an obligation to declare applies;
- Record the obligation to declare and substantiation administratively;
- Collect the necessary data for the assessment.
Considerations
The Invitation to file process is important for informing citizens in a timely and correct manner about their obligation to file returns or possible refunds. We want to do this carefully. The algorithm can support a Tax Administration employee in this process. As a result, the assessment is more careful, efficient and uniform.
The algorithm contributes to the systematic and accurate checking of tax data. By using an algorithm, these assessments can be processed faster. As a result, citizens can get clarity faster.
The algorithm determines the assessment based on the relevant data.
The alternative is for an employee to manually collect and assess the data in all cases. This would make the process more error-prone and less efficient.
Human intervention
Human intervention in the Tax Administration context implies that a competent and knowledgeable employee plays a substantial role in decision-making.
In the operation of the algorithm, there is no human intervention. The algorithm makes the decisions. The purpose of the algorithm is to select citizens to receive an invitation to return IH.
Risk management
A major risk with this algorithm is that taxpayers may wrongly receive no invitation to file a tax return, even though they are obliged to do so. This could lead to them failing to meet their tax obligations, possibly without their knowledge.
To mitigate this risk, the selection criteria are carefully drawn up and based on up-to-date data. In addition, the rules are reviewed periodically and adjusted where necessary.
Legal basis
- General State Tax Act:
- General Administrative Law Act:
- General Data Protection Regulation:
- General Data Protection Regulation Implementation Act:
- Payroll Tax Act 1964:
- Income Tax Act 2001:
- Citizens' Service Number (General Provisions) Act:
- Archives Act 1995:
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 op de Loonbelasting 1964:: https://wetten.overheid.nl/BWBR0002471/
- et Inkomstenbelasting 2001:: https://wetten.overheid.nl/BWBR0011353/
- Wet algemene bepalingen Burgerservicenummer:: https://wetten.overheid.nl/BWBR0022428/
- Archiefwet 1995: : https://wetten.overheid.nl/BWBR0007376/
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
- Identifying data (national) identification number/BSN
- Wage, pension and benefit data
- Data from previous income tax returns (financial data and personal data)
- Wage tax
- VIP status indicator
- Age (state pension)
- Residence status (domestic or foreign tax liability)
- Healthcare costs indicator
Links to data sources
- Identificerende gegevens (nationaal)-identificatienummer/BSN: Basisregistratie Personen (BRP)
- Loon, pensioen- en uitkeringsgegevens: Werkgevers, uitkeringsinstanties en pensioenuitvoerders
- Gegevens uit voorgaande aangiften inkomensheffing (financiële gegevens en persoonlijke gegevens): Belastingdienst
- Loonheffing: Belastingdienst
- Indicator VIP-status : Belastingdienst
- Leeftijd (AOW): BRP
- Verblijfsstatus (binnenlands of buitenlandse belastingplicht): BRP/IND
- Indicatie zorgkosten: Aangiftegegevens voorgaande jaren
Technical design
The algorithm consists of fixed selection rules drawn up on the basis of laws and regulations and tax expertise. For each taxpayer, data from different administrations is used to determine whether there is an obligation to file a tax return.
The assessment takes place through a series of services that analyse, among other things, income, tax obligation and relevant personal data. If the criteria are met, an invitation to file a tax return is automatically generated. The selection is fully automated, with no self-learning components.
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