The business succession plan (BOR) is under discussion in the House of Representatives. This scheme allows entrepreneurs to receive a tax break when a family business is transferred to a family member. GroenLinks supports the austerity regime, because “in its current form it has gotten out of hand,” says MEP Senna Maatoug.
There has been talk of adjusting the scheme for some time. In the coalition agreement, the government has already announced plans to make changes. And the Budget Memorandum also referred to a necessary change. But for now, a bill from GroenLinks seems to be receiving little support.
Evasion
“In practice, the scheme is mainly used to avoid inheritance tax,” says Maatoug. ‘This is unfair, because people who want to pass something on to their children pay the full inheritance tax. But if it comes in the form of a BV, you get a full discount. And this was never intended by the legislator. That’s weird.’
“In practice, the scheme is mainly to avoid inheritance tax”
As for GroenLinks, the scheme will not be abolished, but will be reduced. “Back to purpose.” Whether the good guys suffer from the bad guys here is the question, thinks the deputy. The party believes the scheme will have a clearer purpose. «The scheme we are proposing still provides for a discount. The only thing we want to abolish is that infinity of the scheme.”
child eg
According to GroenLinks, entrepreneurs basically already create a BV name when a baby is born. “It’s called Baby bv, just google it, and it’s mostly made by the richest people in the Netherlands.”
The law is meant for everyone, but this way it’s “getting out of hand,” says Maatoug. “We see, and the Central Planning Bureau sees it too, that this regulation is only useful for a very small group of people.” Because the liquidity problems of entrepreneurs are very limited in practice, says the deputy. “Most farms make good profits and can avail themselves of a more limited and austere BOR scheme, and can also simply hand over their farm to a new generation.”
Source: BNR
Fernando Dowling is an author and political journalist who writes for 24 News Globe. He has a deep understanding of the political landscape and a passion for analyzing the latest political trends and news.
