Making certain arrangements with the Dutch Tax and Customs Administration will enable it to handle your tax returns faster and easier. This is how “horizontal monitoring” is created. Openness and trust are key words in this process. The greatest benefit: more certainty about your tax position.
Arrangements with the Dutch Tax and Customs Administration
Horizontal monitoring is where businesses make arrangements with the Dutch Tax and Customs Administration about filing their returns. The purpose of horizontal monitoring is to deal with tax returns more quickly and to obtain certainty concerning a business’s tax position. This practice came about as result of collaboration between listed companies and the Dutch Tax and Customs Administration, who have laid down mutual arrangements in agreements. Horizontal monitoring has also been available to SMEs for several years now.
Trust and responsibility
Horizontal monitoring is based on trust. Based on the arrangements made, the Dutch Tax and Customs Administration trusts that the returns are good enough and it will approve them without checking them. When a return is filed, you may regard the relevant tax year as having been settled. That saves a lot of work as you no longer have to look back. This trust demands responsibility: it is up to you to ensure that your returns are good enough.
Horizontal monitoring is all about the relationship between your company and the Dutch Tax and Customs Administration that is based on trust. You are responsible for preparing your returns properly. Open communication is essential in that respect. If questions or doubts arise while preparing returns, it is your duty to discuss these in advance with the Dutch Tax and Customs Administration so that they can be resolved before you file the returns. Returns are only checked subsequently by means of random sampling.
Horizontal monitoring in the SME sector
Businesses that are required by law to have audits conducted generally conclude individual agreements with the Dutch Tax and Customs Administration. Horizontal monitoring in the SME sector is facilitated through financial service providers, in other words accountants and tax lawyers. In this sector also the arrangement is based on trust. Van Oers Tax has concluded an agreement with the Dutch Tax and Customs Administration (through the SRA) and is able to file returns on behalf of SME clients based on horizontal monitoring.
Businesses benefit from Horizontal Monitoring because:
- current matters are dealt with quickly
- questions are answered quickly
- the here and now is discussed
- more certainty is obtained
What does horizontal monitoring mean for your business?
Ultimately, all horizontal monitoring agreements are individual agreements. As such, we invite you to come and sit down with us so we can get to know each other: free of charge and with no strings attached, following which we will map out the possibilities for your business. Do not hesitate to contact us using the form shown in the upper right-hand corner. You may expect our reply within 24 hours.