In a recent interview with BNR Nieuwsradio, Peter Kavelaars, Professor of Economics of Taxation at Erasmus School of Economics, addresses the news that there is still a lot of tax evasion via the Netherlands. It has become more difficult to evade tax via the Netherlands in recent years, yet the Netherlands' share of global tax evasion seems to have grown.
Every year, governments would miss out on up to €427 billion due to tax avoidance. However, Kavelaars doubts whether that amount is correct. 'The researchers assume commercial profits. However, taxes are calculated on the fiscal profit. That is a lot lower and therefore gives quite a distorted picture,' the professor said. Still, he believes companies and individuals are still evading too much tax.
Yet Kavelaars remains hopeful. 'A lot has happened globally in the last decade. Around 150 countries have decided to jointly take measures and this is really having an effect,' he argues. 'The best-known example is a 15 per cent minimum tax. Although that has no direct effect on the Netherlands, given that we already levy 25 per cent in principle.' Moreover, the professor argues that the Netherlands' position has improved according to other lists, although they are not rising fast on those lists.
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You can listen to the full podcast from BNR Nieuwsradio, 25 July 2023, here.