The Tax and Customs Administration is one of the largest government institutions in our country. Few people do not have to deal with the tax authorities, and for many the following applies: we cannot do with, nor can we do without, this institution.

Most people are on good terms with the Tax Authorities, but what if you live with them in a few minutes and you have to pay a (substantial) sum back?

Demanding creditor

The Tax and Customs Administration is a preferred creditor and therefore has priority over other creditors. The Tax and Customs Administration always wants to see its money and this can cause you problems. Because what to do if you don’t have the amount to pay?

You can try to make a payment arrangement, but it is possible that this arrangement will also cause you problems if you simply cannot pay these (extra) monthly charges. Employees of the Tax Authorities may advise you to take out a loan. Sounds very convincing when an employee of this service will say so, but pay attention! The Tax Authorities can never oblige you to take out a loan in order to be able to pay your tax debt in this way!

Financial duty of care

The government has established the “financial duty of care” in close cooperation with the Netherlands Authority for the Financial Market (AFM). Financial institutions, such as banks and lenders, must comply with strict laws and regulations to prevent you from entering into financially bad weather by taking out a loan, for example. In the light of this, it is plainly strange if the Tax Authorities, in particular a government institution, could oblige you to take out a loan.

It would be too crazy. The Tax and Customs Administration collects its outstanding claim in this way and you pay monthly interest and repayment to a third party. This loan is also reported to the Credit Registration Office in Tiel. This can have far-reaching consequences. Consider, for example, buying a house. Many mortgage lenders make the requirement that you do not have any current loans and check this with the BKR. And there you are neatly reported thanks to the Tax Authorities ….

Can the tax authorities force me to borrow money?

The message is actually simple. Never take out a loan, because the Tax Authorities would oblige you. They absolutely cannot do this! Regardless of whether you are eligible for a loan at all, it is wiser to see if there are other options. It is best to start a dialogue in order to arrive at an arrangement that is acceptable to both parties.