To avoid the taxable benefit associated with a company car, the driver can sign a “ declaration of no private use of car ”. The driver is then permitted to drive a maximum of 500 kilometers privately, which must be substantiated with a complete mileage log . If the declaration has been issued incorrectly, the Tax and Customs Administration may impose a higher penalty for misconduct instead of a default penalty.
Failure to comply with a penalty for incorrect mileage registration
If the additional tax liability for private use is not recorded or the mileage registration is incorrect, the driver may be faced with a negligence or administrative fine. The Tax and Customs Administration will impose a negligence fine of €4.222 (80% of the maximum fine of €5.278) if an additional tax liability has been wrongly disregarded. Incorrect mileage registration can increase this fine to €5.278. A administrative fine can even be imposed in cases of intent or gross negligence.
In case of gross negligence, a fine will be imposed
In cases of gross negligence, the penalty amounts to 40% of the total amount of taxable benefit that should have been paid. If there is demonstrable intent, the penalty even rises to 80%. And if it concerns incorrect mileage registration , the Tax and Customs Administration can even increase the penalty to 100%. Because the penalty can become very high, the Tax and Customs Administration inspector must investigate whether the case is serious enough to impose a higher fine.
Don't risk incorrect mileage registration
The highest fine is imposed on the driver who submits an incorrect mileage log to the Tax Authorities. If you currently keep a mileage log in Excel , do not run the risk of errors creeping in. If you do this manually, the risk is high. If you use a GPS mileage tracking system, you do not run this risk and all kilometers are tracked automatically. And is this expensive? No, actually more affordable. For €5,75 per month, the entire mileage tracking is taken off your hands. Take advantage of this; read more about the possibilities here or contact us. We are happy to advise you further.
