Last week we reported that, due to the corona crisis, the cabinet has come up with measures to postpone the payment of income tax, corporate income tax, VAT and wage tax assessments. The collection will be stopped on request, if payment problems have arisen as a result of the corona crisis. A point of attention in this respect is the notification of inability to pay.
In case of inability to pay an assessment of VAT and/or wage taxes on time, the director must report this to the Tax Authorities in writing within two weeks after the tax assessment should have been paid. If this has not been done, the Tax Authorities will hold the director jointly and severally liable for outstanding Wage tax and VAT assessments in the event of bankruptcy. In that case, the director must make it plausible that the bankruptcy is not his fault.
The notification of inability to pay does not have to be made for each subsequent tax assessment that cannot be paid. As long as payment arrears have existed since the notification, a new notification of inability to pay may be omitted without a notice to the contrary from the Tax Authorities.
A notification of inability to pay does not mean that the tax debt is waived. At the same time, the obligation to file a tax return will continue to exist and a tax return will therefore have to be filed in time.
