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Offsetting Allowances Against Debts in Rotterdam

In Rotterdam: rules for offsetting allowances against debts. Objection at District Court Rotterdam, help via Municipality and Legal Aid Office. Rights and tips (128 characters)

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Offsetting Allowances Against Debts in Rotterdam

Offsetting allowances against debts in Rotterdam means that the Tax and Customs Administration/Allowances reduces your allowance in part or in full to recover outstanding government claims. This applies automatically to debts such as taxes or fines, which are common among Rotterdam residents in the port or healthcare sectors. It is a legal collection method, but as a Rotterdam resident, you can lodge an objection. This article explains the rules, your options, and region-specific tips.

Why offsetting in Rotterdam?

The government aims for swift debt recovery, and monthly allowances such as healthcare allowance, rent allowance or childcare allowance are ideal for this. In Rotterdam, with many flexible jobs in the port, debts to the Tax Authority, UWV, SVB or DUO can quickly accumulate. Offsetting ensures you do not receive double payments while debts grow.

Example: You have €500 outstanding income tax. Your €125 monthly healthcare allowance from Rotterdam is fully withheld until the debt is cleared.

Legal basis

Offsetting is governed by the Tax Collection Act 1990 (article 14 IW), which allows state claims such as allowances to be offset against debts owed to the State. For allowances: Allowances Act (Wtt) article 31, with objections under the General Administrative Law Act (Awb).

The Tax and Customs Administration sends an offsetting decision detailing the amount and reason. You can lodge an objection with the Tax and Customs Administration/Allowances within six weeks (article 6:3 Awb).

Which allowances and debts in Rotterdam?

Not every allowance or debt qualifies. Overview specific to Rotterdam residents:

Allowances that can be offset Debts for which offsetting is possible
- Healthcare allowance
- Rent allowance
- Childcare allowance
- Child-related budget		 - Tax debts (income tax, VAT)
- Fines (parking or traffic fines CJIB)
- UWV recoveries
- DUO loans
Exception: Child-related budget not offset against childcare debts from the benefits scandal (2023 rules).

Source: Tax and Customs Administration/Allowances 2023. Private debts, such as to Rotterdam energy suppliers, do not qualify.

Rights and obligations as a Rotterdam resident

Rights:

  • You always receive an informative letter.
  • Objection within 6 weeks to the Tax Authority; if rejected, appeal to District Court Rotterdam.
  • Provisional remedy for suspension (article 8:81 Awb).
  • Protection below subsistence minimum: approx. €30 per month per person remains exempt.

Obligations:

  1. Pay debts promptly to avoid offsetting.
  2. Report changes, such as a new address in Rotterdam.
  3. Cooperate with repayment plans.

Real-life examples from Rotterdam

Example 1: Mrs. De Boer from Rotterdam-South has €1,200 in parking fines. Her rent allowance (€250/month) is offset. After 5 months of full allowance again, following successful objection on grounds of limitation.

Example 2: The Van Dijk family, affected by the benefits scandal, sees no offsetting of childcare debt against child-related budget due to 2023 exceptions.

Example 3: Mr. El Idrissi, a port worker, has an €800 UWV debt. Healthcare allowance (€140) is offset, but remission via Municipality of Rotterdam temporarily halts this.

FAQs for Rotterdam residents

Can I object to offsetting?

Yes, within 6 weeks of the decision. Grounds: incorrect debt or deferral. Often successful for limitation or erroneous collection. Help available at Legal Aid Office Rotterdam.

Does a payment arrangement stop offsetting?

Not automatically. Request suspension from the Tax Authority. Consider a compulsory composition via Municipality of Rotterdam for a full overview.

Problems caused by offsetting?

Contact debt assistance at Municipality of Rotterdam for mediation, remission or minimisation. See also remission.

Can private debts be offset?

No, only government claims such as CJIB. Commercial debts do not qualify.

Tips for Rotterdam residents

  • Check Mijn toeslagen: View debts and offsets online.
  • Lodge objection: Via toeslagen.nl form with supporting documents.
  • Seek debt help: At Municipality of Rotterdam or Legal Aid Office Rotterdam. Also read about garnishment of benefits.
  • Prevent escalation: Pay small debts yourself to stop progression.