Risk model gift tax (RMS)

Dutch Tax and Customs Administration

Gift tax is levied on donations depending on the amount donated and the relationship between donor and recipient, with an algorithm supporting the Tax Administration in assessing returns since 2018, although decisions on discrepancies are still made by employees.

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-schenkbelasting-rms/

Responsible use

Goal and impact

Gift tax is the tax levied on donations. Whether- and how much gift tax has to be paid depends on the amount donated. And on the relationship between donor and recipient.

See the website of the Tax Administration for more information.

Since 2018, Tax Administration staff have been supported by an algorithm in assessing Gift Tax returns. The algorithm identifies which parts of a return require attention. Gift tax assessments are partly imposed manually and partly automatically. Decisions to deviate from the submitted return where necessary are not made automatically, but by a Tax Administration employee.

Considerations

It takes a lot of time to manually assess all returns received annually. Therefore, an algorithm supports the Tax Administration in assessing whether a return should be processed automatically or manually. This is done with relevant data known to the Tax Administration. In this way, the available capacity is used in the best possible way. By using the algorithm, the assessment can be done more carefully and efficiently. The algorithm contributes to the systematic and accurate checking of returns.

Human intervention

Human intervention in the Tax Administration context implies that a competent and knowledgeable employee plays a substantial role in decision-making.Human intervention is involved in the operation of the algorithm, but decisions are also made by the algorithm. The algorithm detects, selects and makes decisions. In situations where the algorithm cannot make the decision (such as more complex situations or deviation from the declaration), there is human intervention by an employee.

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

On the basis of the Algorithm Register Policy Framework, the responsibilities and tasks in the use of 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

• Gift tax return details
• Identifying data donor and recipient
• Indication of high net worth individuals
• Property data
• Loan details
• Income tax return details (IH)
• Data ANBI Regulation
• Objection data

Links to data sources

• Aangiftegegevens Schenkbelasting: Belastingdienst
• Identificerende gegevens schenker en ontvanger: Basisregistratie Personen (BRP)
• Indicatie zeer vermogende personen: Belastingdienst
• Vastgoedgegevens: Belastingdienst
• Lening gegevens: Belastingdienst
• Aangiftegegevens Inkomstenheffing (IH): Belastingdienst
• Gegevens ANBI Regeling: Belastingdienst
• Bezwaargegevens: 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.

External provider

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