Tuesday, November 08, 2005

Banking with the government

I've noticed years ago that if you didn’t file your tax return in the same year, you get more money from the Dutch Treasury. The interest at 5% is much higher than from the commercial banks (around 3.25% at this moment).

It seems that some of Dutch firms realized this loophole, and started paying too much tax in order to get more return by 'banking with the government'.

Now, Dutch Finance Minister, Zalm, said in his weblog that this kind of practice needed to be stopped as quickly as possible. Judging by the rate of bureaucracy in Holland, I don’t think He can put a stop to it within this tax-year.

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