Temporarily moving money around January 1st just to lower Box 3 tax is considered tax fraud and can result in penalties.

Action Steps

1. 1Legitimate: buying a car you actually need in December
2. 2Legitimate: paying bills early that you actually owe
3. 3NOT legitimate: borrowing money Dec 31, repaying Jan 2
4. 4NOT legitimate: selling investments Dec 31, buying back Jan 2
5. 5Belastingdienst actively looks for suspicious patterns
6. 6Penalties can be up to 300% of avoided tax

Requirements

• •Transactions must have economic reality
• •No circular arrangements

Questions for Bas