Thursday, February 25, 2021
Home Breaking News 'Thousands of self-employed workers had to wrongfully repay benefits' | Economy

‘Thousands of self-employed workers had to wrongfully repay benefits’ | Economy

Due to a mistake by the Tax Authorities, thousands of Dutch people had to pay back allowances unjustly. Article link

The so-called loan assistance was intended to help those entitled to benefit from unemployment benefit or social assistance benefits, but it actually helped them unintentionally in financial problems.

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According to estimates by the Ministry of Finance, possibly 10,000 to 15,000 Dutch people have run into problems due to the use of so-called loan assistance (bbz), according to research by De Volkskrant. Many victims fell into debt as a result. Only a small number of them received compensation.

With the loan assistance, benefit recipients could start their own business with an interest-free loan from the government. If afterwards it appeared from the annual figures that their company had earned no more than the social assistance standard, the loan was forgiven.

Accounting twirl

Due to an accounting twist, the Tax and Customs Administration added the waived amount to the benchmark income. As a result, in the year after they received the loan, they suddenly had a much too high income on paper and they had to repay thousands of euros in excess payments.

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The problem had been known since 2010, according to case law and parliamentary questions. It would not take until 2017 until the problem was resolved.

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