Target group definition shortened income tax return (VKA)

Dutch Tax and Customs Administration

A condensed income tax return (VKA) simplifies the return for taxpayers with a simple tax situation, selecting them on the basis of objective tax characteristics, and if changes are required, referring them to the regular return.

Last change on 5th of February 2025, at 14:15 (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/doelgroepbepaling-verkorte-aangifte-inkomensheffing-vka/

Responsible use

Goal and impact

With a condensed income tax return (VKA), filing returns for citizens with a relatively simple tax situation becomes easier and the risk of errors is reduced. To determine the target group of citizens eligible for a VKA, taxpayers are selected on the basis of objective tax characteristics.

This group of citizens is then offered a shortened (more straightforward) return. If the VKA is offered, but changes or additions need to be made while checking the data, the citizen will be redirected to the regular return.

Considerations

With the VKA, the Tax and Customs Administration wants to make it easier for this group to file returns and thus reduce the risk of errors in the return. This enables the Tax and Customs Administration to perform its tasks more efficiently and to improve its service to citizens. Offering citizens a method of filing returns that suits them increases their willingness to file returns and also the quality of the returns. This also increases the quality of tax return processing by the Tax and Customs Administration and contributes to the performance of its statutory duty to levy and collect taxes and national insurance contributions. To reduce the risk that citizens, during the VKA inspection, have to switch to the regular return, a correct determination of the target group is of great importance.

Human intervention

Human intervention in the Tax Administration context implies that a competent and knowledgeable employee plays a substantial role in the decision-making process.

In the operation of the algorithm targeting VKA, there is no human intervention. The algorithm makes the decisions.

If the abridged (more simple) return is presented to the citizen, but changes or additions need to be made while checking the data, the citizen is redirected to the regular return.

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
• 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 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)
• Data on income not taxable in the Netherlands
• Reason code, why BSN does not belong to the target group

Links to data sources

• Identificerende gegevens (o.m. BSN): Basisregistratie Personen (BRP)
• Contra-informatie (financiële gegevens en gegevens over levensgebeurtenissen): Belastingdienst
• Bedrijfsgegevens: Kamer van Koophandel
• Gegevens uit voorgaande aangiften inkomstenheffing (financiële gegevens en persoonlijke gegevens): Belastingdienst
• Gegevens over niet in Nederland belastbaar inkomen: Belastingdienst
• Redencode, waarom BSN niet behoort tot de doelgroep: 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 by Tax Administration staff and is also maintained internally.