- A taxpayer can lodge an objection against a tax assessment with the Dutch tax authorities within six weeks after the date of the tax assessment.
- If the tax inspector's decision during the objection phase is wholly or partially unfavorable, an appeal can be lodged against this decision with the district court "Rechtbank" within six weeks after the date of the decision on the objection.
- A notice of appeal can be lodged with the court of appeal "Gerechtshof" within six weeks after the date of the district court's ruling.
- An appeal to the Netherlands Supreme Court "Hoge Raad" can be lodged against the decision of the court of appeal within six weeks after the date of the court of appeal's decision.
First stage: Objection phase (administrative appeal). Administrative appeal is compulsory.
Second stage: A taxpayer can lodge an appeal with the district court against a decision on the objection.
Possible further stages: A taxpayer can lodge a higher appeal with the court of appeal against a decision of the district court and can lodge an appeal in cassation with the Netherlands Supreme Court against a decision of the court of appeal.[1]
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[1] Under certain circumstances, a taxpayer and the tax authorities can opt to lodge an appeal in cassation against a decision of the district court, which means that they skip the court of appeal phase.
a. Start: Arbitration can occur in international situations.
Mediation can be used as a dispute resolution mechanism in all phases of the proceedings. However, mediation is not included in Dutch law, and it is therefore on a voluntary basis and subject to case-by-case conditions. Parties usually agree to temporarily stay the legal proceedings during mediation.
A MAP request can be submitted by the taxpayer once it has a reasonable suspicion that it will be taxed in a way that is not in line with a tax treaty to which the Netherlands is a party. The timing for submitting a MAP request is based on the applicable treaty.
b. Conduct of the proceedings:
MAP negotiations will be set up after the tax assessment becomes irrevocable, i.e., once objections and/or appeals in the Netherlands are no longer possible or have been exhausted.
It is also possible to request an accelerated MAP proceeding, in which case the Netherlands government will set up negotiations after the tax assessment has been imposed (before the appeals phase has been started). The taxpayer will have to agree with postponement of the time period for the Dutch tax authorities to decide on the objection for the duration of the accelerated MAP proceeding.
c. Taxpayers can request an extension for the payment of the assessment, which can be made subject to certain guarantees or conditions. In principle, the interest on undue payment will continue during the MAP proceeding. Exceptions may apply.
d. Completion of proceedings:
In a MAP proceeding, the competent authorities usually come to an agreement. The taxpayer can accept or revoke the outcome of the MAP negotiations. If the competent authorities do not come to an agreement, the taxpayer can use its remaining domestic legal options, if they are still available.
Arbitration decisions are generally binding on the taxpayer and the competent authorities.
e. Other actions:
It is not possible to directly appeal a MAP decision.