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Netherlands Targets 'Black' Credit Card Payments

by Ulrika Lomas,, Brussels

15 June 2010

Dutch Finance Minister De Jager has instructed the country’s tax department to trace payments made using anonymous 'black' credit cards (special credit and pin debit cards), linked to bank accounts in former tax havens.

According to the finance ministry, these accounts are not reported to the tax department and probably account for hundreds of millions of euros of undeclared funds. The tax department is currently in discussion with organisations processing such credit card payments in the Netherlands in a bid to track down the individuals concerned.

In a statement, De Jager explained: “It is inconceivable that people buy expensive things anonymously through foreign bank accounts and at the same time try to dodge tax. The tax department ruthlessly tackles this type of fraud. When caught the fine can be as much as at most 300%.”

The Dutch tax department and the Fiscal Intelligence and Investigation Service and Economic Investigation Service (FIOD) believe that these credit and pin debit cards are regularly used to buy expensive goods, and that they are used regularly in attempts to commit investment and value-added tax carousel fraud.

The finance ministry states that: “The tax department now has the possibility to filter payments by Dutch citizens by for instance analysing the frequency and location of the payments. On the basis of the account number the tax department can subsequently request information about the owner of the account. To this purpose De Jager concluded in the past year dozens of information exchange treaties with former tax havens.”

It is estimated that in the region of EUR30bn of undeclared funds is located in foreign accounts.

TAGS: individuals | tax | investment | Netherlands

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