Employers to police use of company cars

20th June 2005, Comments 0 comments

20 June 2005AMSTERDAM — Small and medium-sized enterprises association (MKB-Nederland) has lashed out at new rules which it says would force employers to pry into the private lives of staff who have company cars.

20 June 2005

AMSTERDAM — Small and medium-sized enterprises association (MKB-Nederland) has lashed out at new rules which it says would force employers to pry into the private lives of staff who have company cars.

MKB claims in a letter sent to the government on Monday that the new regulations for lease cars that come into force in 2006 will considerably add to the paperwork businesses must complete.

Employers will also have to concern themselves with finding out what employees with leased company cars do with them outside work hours, MKB said.

From 2006, private use of company cars will fall under the wage tax system, and employers will be required to monitor and record personal use of leased cars, MKB said.

Employers face fines if an employee fails to report more than 500 kilometres of personal use of a company car per year.

The MKB failed to garner much political support when it first voiced objections at the unveiling of the government's plans for the new regulations last year.

The business association has now shifted its line of attack from the administrative burden it will impose to the "undesirable situation" in which employers will be responsible for the private use of company cars.

The MKB argues in its letter to government that employers don't have insight into what staff with company cars use them for in their private lives and have no wish to find out.  

Employers group EVO also criticised the paperwork required by the new regulations, suggesting that they would cost Dutch business EUR 250 million annually.

"It is a debit item and administrative burden for a large number of companies and that comes in a time in which the Cabinet is proudly heralding itself for reducing the burden on business," EVO director Dick van den Broek said on Monday.

Both MKB and EVO have called on the government to scrap the plans to introduce the new regulations.

[Copyright Expatica News 2005]

Subject: Dutch news + company cars in the Netherlands

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