Mass corrected income tax return (MC)

Dutch Tax and Customs Administration

With Mass Correction (MC), taxpayers with relatively simple corrections in their income tax (IH) returns are fast-tracked for a final assessment.

Last change on 5th of February 2025, at 15:04 (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/massaal-corrigeren-aangifte-inkomensheffing-ih/

Responsible use

Goal and impact

With the Mass Correction (MC) of income tax returns, eligible citizens receive an accelerated final Income Tax assessment. These are returns in which there are relatively simple corrections in the citizen's return. To determine the target group of citizens eligible for MC of their IH returns, taxpayers are selected on the basis of objective tax characteristics.

For part the selected group of citizens, the income tax assessment for a specific tax year is finalised. In these cases, there is a positive adjustment. For those citizens who disagree with the final assessment, the possibility of objection and appeal is open.

The other part of the selected group of citizens receive an advance notice of the correction on the income tax return. This group of citizens is given an opportunity to respond to the advance notice. For the citizens, the possibility of objection and appeal is also open in this case.

Considerations

The MC is important for timely and careful processing of IH declarations. We want to do this carefully. The algorithm can support an Inland Revenue employee to do this. As a result, the assessment is more careful, efficient and uniform.

By using the algorithm, the Tax Administration can improve its service to citizens. It also increases the quality of the Tax Administration's return processing and contributes to the performance of its statutory duty.

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 MC, there is no human intervention. The algorithm makes the decisions.

Risk management

The Inland Revenue 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
• Payroll Tax Act 1964
• Income Tax Act 2001
• Citizen 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/
• Wet 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 (including BSN)
• Counter information (financial and life event data)
• Company data
• Data from previous income tax returns (financial data and personal data)

Links to data sources

• Identificerende gegevens (o.m. BSN): Basisregistratie Personen (BRP)
• Contra-informatie (financiële gegevens en gegevens over levensgebeurtenissen): Belastingdienst
• Bedrijfsgegevens: Belastingdienst
• Gegevens uit voorgaande aangiften inkomstenheffing (financiële gegevens en persoonlijke gegevens): 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. This means that the algorithm does not develop itself during its use.

Based on selection rules, the algorithm assesses whether the income tax return qualifies for correction and final determination. This only happens if the correction is in the taxpayer's favour.

In case of a negative correction, an advance notice is always sent.

External provider

The algorithm was developed by staff at the Inland Revenue and is also maintained internally.