Due to the unpaid debts of the crown to entrepreneurs, “tens of thousands of entrepreneurs” will go bankrupt, says Hans Biesheuvel, president of Ondernemend Nederland (ONL). According to State Secretary for Taxation Marnix van Rij, there are more than 70,000 entrepreneurs who have not yet paid off a single euro of deferred taxes during the corona crisis.
More than 30,000 entrepreneurs would have a debt of over 10,000 euros. Nearly 30,000 entrepreneurs who have not yet paid off their debts to the crown have a debt of 5,000 euros or less. According to Biesheuvel, it is not surprising that many entrepreneurs have not yet paid off their debts. “You actually saw it coming, because 2022 has been a tough year. We started with a lockdown and then entrepreneurs saw their energy bills go up, causing inflation to rise again.’
Higher costs
And this has reduced entrepreneurs’ costs enormously, explains Biesheuvel. ‘Rent has gone up, energy bills have gone up, wage costs have gone up. And in the meantime you have to save money to pay off. This has been difficult for many companies.’
According to Biesheuvel, “the pain” is mostly in the hospitality and retail industries. “They’re dealing with high rents and low margins. They really have no idea how to fix it there.’ Furthermore, Biesheuvel points out that entrepreneurs can also use a payment hold during the five-year repayment period, which began on October 1, 2022. ‘Many entrepreneurs did so immediately. But yes, then it really has to start in 2023.’
“They really have no idea how to fix it”
Biesheuvel also believes that the erroneous estimates were made by entrepreneurs. ‘Many of them even thought they could afford it in 2023. But that’s disappointing for some at the moment, so there would be too little left when they start to pay off.’
Especially failures in catering and retail
In mid-May, however, the Tax and Customs Administration threatens to knock on the door of entrepreneurs who have not yet repaid their debts to the crown. “Too soon,” says Biesheuvel. “That money just has to come back, but I also understand that after three very difficult years, without a lot of fat on my bones, that’s a lot coming at the same time.”
However, the consequences are great. Tens of thousands of entrepreneurs could face bankruptcy, the president predicts. ‘Certainly in the hospitality and retail sector’
Source: BNR
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
