According to the Court of Appeal, this so-called box 3 levy is in violation of the European Convention on Human Rights. In box 3 with your tax return, tax is levied on your profits from assets such as savings and investments.
The Tax and Customs Administration assumes that you will make a return of 1.2 percent in any case. Even if you do not achieve that, you must pay tax on that percentage.
But with an interest rate on savings often close to 0 percent, that is unjustified, the judges say.
Tens of thousands of people have objected in recent years to the savings tax on profits they did not make. The judge now ruled on the period 2015-2018.
Consciously too much tax
The tax authorities also assume that people no longer put their money in a savings account from a certain capital limit, which is now at 50,000 euros, but instead invest it.
They could then earn more. But not everyone is going to invest.
According to the court, the government has made a conscious choice to tax 40 percent of taxpayers with box 3 assets as if they had also partially invested their assets.
As a result, they were taxed for higher income than what they actually earned.
The court does not force the government to repay the overpaid taxes. Before that, other lawsuits are awaited.
According to the court, there is also ‘no individual and excessive burden on the taxpayer in these cases’. So the attacks continue. And chances are it will stay that way.
In a case from 2019 that concerned earlier periods, the Supreme Court finally decided, just like the Court of Appeal, that the savings tax should be abolished, but that there is no need to repay.